Financial Times , 1982, UK, English

m

in. P.
* ■ • >*5 u

deadlock over political leadership

fiENERAL

BUSINESS

BY HUGHO’SHAUGHNESSr, LATIN AMERICA CORRESPONDENT

Princess
and baby
leave

£ up as
$ sinks;
share fall
checked

['THE DEADLOCK over Argen-
j tiha’s politick leadership was
resolved last night with the
appointment of General Rey-
-riaJdo Bignone, a retired officer,
as- President.

The decision was taken by the
country's senior army generals
against the wishes of the navy
and airforce, whose commanders
make up two of the three
members of the ruling military
junta.

Although the appointment
could.be expected to avert the
immediate threat ' of civil
violence, political parlies in

Argentina are opposed to the
presidency going to an army
man.

Public opinion is also thought
to'be opposed to Gen Bignone,
a political unknown put up as
president in opposition to Brig
-Gen Basilic Lami Dozo, the air-
force commander in chief, a
political liberal in favour of a
restitution of civilian constitu-
tional rule.

Clarin. the popular daily,
hinted yesterday that some
Junior officers In the army were
becoming increasingly unwill-
ing to obey the orders of their

senior commanders. They were
said to have lost confidence in
the generals because of the
debacle in the Falkland Islands.

In a tough statement late on.
Monday night the army said
there would be no return to
civilian rule before 1984. '

The army added that it was
not wedded to any particular
economic policy, a comment
which appears to indicate a wish
to distance itself from the
unpopular monetarist policies
followed by successive military
rulers since the coup de’etat in
1976.

Earlier, the uncertainty pro-
voked by the power vacuum
and confirmation that Or
Roberto Aleman, economy
minister, was provisionally con-
tinuing at his post after offer-
ing to resign last week, caused
the Argentine, peso to continue
its rapid downward slide.

• . Popular anger and- frustra-
tion, which last Tuesday broke
into rioting in the Plaza de
Mayo, was. also building up
again.

Four of the five members of
the multi partidaria grouping of
parties, wbicb met on Monday

night without the Pcronists,
issued a statement calling for
a return to the constitution.
The parties added: '“The nation,
deeply disappointed, looks on
at the spectacle being pre-
sented -on the platforms of
power."

The normally pro-Govern-
ment dally La Nacion lashed
the present regime in an
editorial saying that politics “ is
tbet duty of everyone and not
the privilege of a few."

The Buenos Aires daily La
Prensa commented that Argen-
tines were overcome with sad-

ness, anger and impotence" at
the present situation.

Admiral Emilio Massera, a
former navy commander-in-
chief and junta member who
has turned full-time politician,
said Argentina is “ a country
paralysed and on the brink of
bankruptcy."

The impact of the week-long
crisis left the unofficial rate of
the peso at over 32,000 to the
dollar, compared with the
official quotation of 13.100.
Junta in disarray over sanc-
tions, Page 6; Owners await
settlement over ships. Page 11

The Prince and Princess of • STERLING rose lid mints
Wal^s last night took their baby to SL7380 (SL727) In Londlra!

to their London home In hut weakened In terms of- other 1
Kensington Palace, less than 24 currencies. It closed at DM
hours alter he was born in St 4-2675 (DM128), SwFr 3.6275
Mary’s Hospital, Paddington. (SwFr 3.6775) and FFr IL83
The couple took it in turns < FFr 1L865). Its trade-weighted
to hold infant before iadex wa * (0L6). Page 32

hundreds' or pressmen and ^

™ - the morning. “MS&nfBS

Bookmaker William HOI has was 120.7 (121-.7). Page 32 -

George at 6-4 favourite for the

baby’s name, but Albert and • GOLD rose S10JSS to S30C25

Nott rules out major
shift in defence policy

BY BRIDGET BLOOM, DEFENCE CORRESPONDENT

jsooKmajser wimam ±iui nas was 120.7 (121-.7). Page 32 • -THE GOVERNMENT has- come - perceived lessons of the past a week after the Argentine i

down firmly against any signifi- few weeks." surrender— and apparently with

baby.s name, but Albert and • GOLD rose $10.25 to S30&25 catrt changes in Britain’s The Falklands was the first not a single word changed since !

Arthur nave been -backed down in London. In New York, the defence policy as a result of Lhe engagement of ils kind since the it was printed in April— could'

from 20-1 to 8-1. Comex June dose was $299.0. conflict in the Falklands. Second World War. Any be seen as a direct challenge

Page 25 Mr Jolin Nott, the Defence changes to Britain's defence to his ■critics. It represents the

Ulster 1 vote - Secretary, who launched the policy, as announced following first ministerial shot in what

t-H.fcu.--u • EQUITIES were steadier on delayed Defence White Paper, last year’s defence review, could could be an increasingly bitter
Twenty^ve Tory backbenchers currency considerations and a yefi terdpy said some parts oE be made only "after mattire political battle over the next

UJL." * TTintiSn l ? 2 J ll i5f raU T aB * r 1 J? , ^5J l eP the defence programme would study and reflection." • weeks, involving not just

against a Government motion of falling values: The FT 30- he reviewed as a. result of the In his published statement politicians but key defence

imposing a pullotine on lhe share index closed 0JS higher at FaUdands crisis. He expected and at a later Press conference, figures as well.

Northern Ireland Bill. TotaL 555iJ Page 3l to publish a new white paper Mr Nott thus left the impression jjr Nott yesterday noted

Z3 a SS St ,Sr i „ 44 ’ ( “"- .... review, later ta « white h, wj, open to

pared with 298 in favour. • GILTS were firmer, gaining v „, r

V, ... 14 I.I. - V ■ ran nm n J I v^* 11 ■

Debate, Page 14

changes in the defence policy, grammes will be reviewed — the

in late trading: The FT Govern- Bot the main threat to he did not expect any— except decdslcm'
Securities mdex rose <L39 Britain remained the. nuclear marginally. inumhen

tsui me mam uireai io nu uiu hul any — decision to cut manpower

Britain remained the . nuclear marginally. ■numbers in the armed forces,

and conventional forces of the Mr Noil’s statement, which ^ decis i 0Il l0 n,n down Ports-

Derry bombs t0 ® S * M * Page.31 and conventional forces of the Mr Nott’s statement, which the decision to run down Portfr

Two bombs exploded at an oil • WALL STREET was up 5.81 S^ ie LjS!j° n ’ Amandin* lhe Xet^aereSSf vrill h £ "T? dockyard. and f

s'rsM vsa&s&LZ

Two bomb, exploded at an oil • WM1 STREOT w« op 5.81 £u "til ."1 i" “

werp ottfftn and notice said wnu w «««, ‘ fi,- .7 V aircraft earners currently in tne

ISSre MreSofiD • TOKYO SHARES rallied after prime concern now., as it had JjJw-Jhe ’Political f nd Soulh At i aiJ tic. to Austraha.

Rail warning 10 anxieUes ° ver “ ch “ 6e 'ggU? ffX SKBSuaufc is ms*.

.V flu. I I— T-rt » Valuable experienee had tea, moot , ho Royal Navy is parUeu- ^oltaort on Back Pwo

Rail warning ” 0TW

British- Rati warned of the .lannn IhebaGn

“ appalling consequences to iBBlnUH

the railway industry if the NUR woo | nMQei I SUfa* P
strike goes . ahead on Monday. « ' . V

Back Page. ■ London’s under- V - \ W llfi Bfl . 500

ground service faces its third . I \ •

day . of almost total shut-down. 7300 -h - \

Page 13. J.. . . .

New ambassador ~_|4 — \

Sir Oliver Wright/ 6L h« been' , . . A

brought out of retirement to F,. \ . ■

succeed Sir. Nicholas Hendersaa V ! 1

as Britain's • next U.S. jf - — -J . — A 4fip

ambassador. Men and Matters,

Page 18 V-Ltan

' • . ... ■ JWE1992

Pilots killed

Two British pilots were killed and U.S. interest rates,
when their Second .World War AUSTRALIAN shares dipped
training aircraft crashed and with the Sydney AH Ordinaries

VOIUdOir CAJ/Cl ItUVU JIOV MbWlI ’ “ * * * was- 1 -. - « . VI tA.

gained, he said. " But we should lariy disputed. Wiite Paper details. Page 12,

not rush into premature conclu- Mr Nott’s decision to publish , Editorial Comment. Page 18;
sons based on : the dimly the Defence White Paper barely Lex, Back Page

Nurses’ rise splits unions

JUNE 1982

-> Vf IVP DAWNAY, LABOUR STAFF . ; . . ' . \ -

TOE GOVERNMENT succeeded nursing bodies was reached' Throughout the six -week oam-
yesterday in splitting the Health before they received the terms paign the TUC unions, repre-
Service worker’s united cam- of Mr Fowler's final offer. senring workers In all grades of

paign for a 12 per cent pay rise They warned that the “ NHS workers from nurses and
when leaders of four profes- “shoddy treatment they had 1 medical te chn i cians to laundry
sional nursing associations received would strengthen the and pottering staff, have in-
agreed to recommend acceptance resouve of NHS workers to sisted on a uniform pay rise,
of a final offer of 7.5 per cent, fight a lengthy and vigorous ■ Th e cost of the new offers, it
The previous offer to nurses campaign. is estimated wouM add £90m to

was 6.4 per cent Under the deal agreed with the NHS pay bilL Of this at 'least

wuen. Mew [fcecona .worm ™ ~ ^ was 6.4 per cent - Under lhe deal agreed witn the NHS pay bilL Of this at -least

trau^ aircr^ crashed and The dejdi reached ^after two the professional bodies the two-thmfa will come from the

hurst into flames during an index down 2.5 to 459.6. Page 20 days’ talks between Mr Norman Government gave a firm under- Treasury special contingency
international air rally near INFLATION rose by 1 Fowler, Social Services Secre- . taking to complete talks on a reserve, the remainder from

Valetta, Malta. - oer cent in May. mainly due to tar y> and negotiators for the permanent formula for assess- local health authority budgets.

price rises, after in- Royai CoUege of NWwJteiiM ingnui^ pay in time for the Dame Catherine HaH, general

Indian jet crashes PJ -easingby only 0.1 per cent visitors and -midwives^ groups,. 19M^iMiy^round.^ . secreraiy of flie 195,000 strong

Seventeen Indians were killed in the preceding three months, was condemned “ > se ^Jt J^^ ,er an^rtiS ? CN ‘ raid that sbe 1 .' and ber , S? ] '

when an Air India Boeing 707 In Canactii. inflation rose L4 per V jj e TUC heaim servlce SST2S, NUS JrouS lea ^ s **

from Singapore crashed wbUe cent in May. F^,.8 unions broto off Zm 1 SB* 1 !*

lamiioE in heavy rain at Bom- evteRNATIONAL Business parallel talks which included differential demanded by -the d ^. faSrSSswas

bay ' Machines (IBM) is negotiating Sn improved 6 per cent offer Thar dedrion effectively (fietate S oTeSnSSSlZS

- ^ ■ f with British Telecom and for ancUlaiy and other staff nursing bodies in recognition ^ ^ nnai poauon

Expenses 'chaos British Aerospace on plans for groups previously offered 4 per of their “*edal ”■ steti^ ^ne?Sto?to ™ aitftoVl™

Eunmean Pariiament president a trensatiantic business com- cent That decision effectively (he- money going no ne avaiiame. .

steps munications satellite. Back The TUC unions were par- tided the 6 per cent celling on Todays Mtional onetiay

were bS^tSen to end Se Page ticularly annoyed, that agree- rises payable to ancillary and stiike. the fourth so far, wiH go

MEW meat with the profmional other staff. . ahead as planned.

EEC to
fight U.S.
on steel

By Gila Merritt in Luxembourg

THE EUROPEAN Economic
Community yesterday declared
that it planned to resist U.S.
anti-subsidies duties on
European steel exports and to
lake ' counter action against
alleged UB. subsidies to its
own steel companies.

EEC industry ministers, meet-
ing in Luxembourg, also
threatened to take the U.S. to
court over President Reagan's
embargo on the use of U.S.
technology for the trans-
Siberian gas pipeline.

At the same time, President
Francois Mitterrand delivered
a strong warning in Paris over
the high dollar exchange rate,
high U.S. interest rates and the
tightening of the technology
embargo.

On the steel issue, a strongly-
worded EEC Council of
Ministers action plan, called for
legal challenges to be nude
against the U.S. in both the
General Agreement 1 on Tariffs
and Trade and the Organisation
for Economic Co-operation and
Development,

The Community is to call for
an immediate meeting of the
Gatt Subsidies Committee to
contest the. U.S. move on steel
and will also urge at the forth-
coming meeting of the OECD
steel committee that the duties
are incompatible with the OECD
consesnsus on steel.

Viscount Etienne Davignon,
the EEC Industry Com-
missioner. also made it plain
that political friction between
the Community and Washington
stemming from trade questions
is now serious. While not yet
an EEC-U.S. “trade war,” he
said^ there are “considerable
political and economic
tension*"

The steel crisis, therefore,
has been added as a matter of !
urgency to -the agenda of the 1
EEC Heads of Government
Continued on Back Page
Other reaction. Page 8

Ceasefire follows
Lebanon fiare-up

BY DAVID LENNON IN TEL AVIV AND ANTHONY McDERMOTT
IN BEIRUT

ISRAEL agreed to a second fe ~ '

ceasefire with Syria* forces in
Lebanon last night after a day

or heavy fighting east of Beirut. s 5

Israeli aircraft bombed and . -j

rocketed Syrian positions for the ggggpi ij|g y /

tfrst time since the original . SBBilitllr SSSS Jf
ceasefire came 1 into effect U /"

days-agu. *.

The fiercest clashes were ■ *"***—•

near the main Beirut -Damascus IBiPSig f mmscb

road as'Israeli forces mounted a ^

three-pronged armoured thrust Saeia launch arj

aimed at capturing vital road /< <

junctions held by the Syrians. J ] ( momSr

Israel's willingness to accept Israel '■ }

a ceasefire last night indicates lip* A i Syria

that her forces may have cap- vl- ^ i ■ ■ "

tured key points at Aley. reach peace agreements with
Bhamdoun and Medeirej, which the Arab states once “ violence
is about 16 miles east of Beirut, had been removed ” from the
An Israeli Army spokesman relations between them and
i would not confirm that there was Israel.

any change in its forces’ posi- The second meeting of
lions, but admitted that there Lebanon's newly - formed
were heavy air strikes and “National Salvation Com-

artiliery bombardment against roirtee " yesterday seemed to
Syrian positions at Hammana make little progress. One of Its
north of Medeirej. members, Mr Walid Jumblatt,

The ceasefire was arranged who heads the Druze com-
by Mr Philip Habib, the special munity, accused Mr Habib of
U.S. envoy, who is in Lebanon trying to conduct “hot
trying to negotiate an end to diplomacy," a reference to the
the crisis. continued Israeli bombardment

There was other fighting in of Beirut.

Beirut yesterday as Israeli and John Hunt writes: A strong
Christian Phalangist forces fired attack on Israel for its invasion
on positions held by Palestln- . of Lebanon was made In the
ian guerrillas inside encircled Commons last night by Mr
West Beirut. Francis Pym. the Foreign

According to an Israeli Secretary,
artillery officer interviewed on He demanded that Israel
army radio, his forces were fir- withdraw her forces in
ing from static positions, while accordance with Security Coun-
the Phalangist forces were raov- cil Resolution 509. " The scale
ing about in their attempts to of the Israeli invasion has been
capture parts of West .Beirut. quite disproportionate to the

Mr Yitzhak Shamir, Israeli objective of achieving security
Foreign Minister, said yesterday from terrorists attacks.”
that the Palestine Liberation Middle East crisis. Page 4

Organisation should be rooted

out from the entire region. _ . .

“We must never forget that' E ,n * orfc
the terrorist organisations are _ ! j U n Q 2i Previous

the source of the problems and { f

hatred in this area for decades.

They are the main stumbling spot si.74io.743o[si.75BS-73e5
block to peace." i month 0.38-0.41 pm 0.39-0.42 pm

Mr Shamir added that he 3 months. 1.35-1.40 pm 1.43,1.47 pm
jur anamir aaaea mat ne 12 months; 4.7 3.4. aapm4.8S-4.95 pm

was sure it would be possible to ■ —

/ Israels bunch ar
*<7 Sfcmdattacks
/ i j on Syrian

i g- f mounlain'

Ss&if i poaiSonb

WS ISRAEL f i
pp* j SYRIA

reach peace agreements with
the Arab states once “violence
had been removed ” from the
relations between them and
Israel.

The second meeting of
Lebanon's newly - formed
“ National Salvation Com-
mittee ” yesterday seemed to
make little progress. One of Its
members, Mr Walid Jumblatt,
who heads the Druze com-
munity, accused Mr Habib of
trying to conduct “ hot
diplomacy," a reference to the
continued Israeli bombardment
of Beirut.

John Hunt writes: A strong
attack on Israel for its. invasion
of Lebanon wag made In the
Commons last night by Mr
Francis Pym. the Foreign
Secretary.

He demanded that Israel
withdraw her forces in
accordance with Security Coun-
cil Resolution 509. "The scale
of the Israeli invasion has been
quite disproportionate to the
objective of achieving security
from terrorists attacks.”

Middle East crisis. Page 4

E In New York

Spot 81.7410.7430,51.7585-7385
1 month I 0.38-0.41 pm0.3On.42 pm
3 months, 1.35-1.40 pm. 1.43. 1.47 pm
12 months; 4.75-4. 82 pm'4.85-4.95 pm

Piet Dankert said urgent steps munications satellite. Back
were being taken to end the Page

^ ’’ dSTbSe • ROLLS-ROYCE Motors is
putting 2,000 production
fraud had been found. Page wor ^ ers on short-time because

. . . „ ....r. Of falling sales and is to buy

Pakistan arrests from smaller outside suppliers
Pakistan’s military authorities many aero engine parts. Page
have detuned six Opposition 12 .

Sharp rise in unemployment total

politi cians and intend to keep.

BY MAX WILKM90N, ECONOMICS CORRESPONDENT
NEW ZEALAND has imposed UNEMPLOYMENT increased / " 1= ' " S

them under arrest for 30 days. a 12 _month frwze on wages, in month to mid-

___ i » — fc ' - prices and dividends to tackle j un e to a totai including

World Cup the high inflation rate. Page 4 scfto oi.]eavers of 3.06m. The

Kuwait were- fined SwFr 25.000 ^ TURKEY has guaranteed underlying trend- also appears
■(£6,800) and the Soviet referee $$ 25 ^ (£360m) of outstanding w have deteriorated,
of. their World Cup matm sold -.to^ Investors by The increase in. the " head-

against France suspended ^by Kastelii, the money line" total was 92,000 compared

Fifa, the International Football broker and securities house with the previous- , mqnth,
Federation, following incidMts collapsed on Monday, according to official figures

in Monday’s game. Yesterday ^ pag e released yesterday. This partly

Pcfland beat Peru 5-1. T , __ . reflects the fact that 102,000

• MEXICO s Grupo Industrial ^5^ schtxrileavecr came on to
Barker out Alfa. wKichhas supended repay- unempJoyment register' in

^ ments on $2bn (£1.15bn) owed ft© month.

Britain’s Sue Barker was beaten abr0 ad, is meeting creditors However, the adult total also
in straight sets by American to ^ay and may’ declare that it increased to 2.91m . ''after
"Sbaron Walsh in her opening cannot even pay interest on the -seasonal adjustment, -39,000
match- at . Wimbledon. debt. Page 30 - more than in May. This is the

Total

©stwflay

1981 ' -1982

tion of the faltering of econo-
mic recovery in the winter
months, when cold weather and
strikes are said to have dis-
. rupted output

Official figures for national
output also issued yesterday
show little change in the first
three mdnths of the year from
the final quarter of 1981.

Mrs Margaret Thatcher called
the latest figures “unwelcome"
in the House of Commons yes-
terday. She blamed the rise on
the advance in interest rates
in the autumn of 1981, but
added that economic indicators
were pointing: to a sustained
recovery in the months ahead.

She was replying to a ques-

Weatheralls

Conduct sales by auction, tender and private treaty. *

Prepare valuations forbalance sheet and insurance,
leasing, mortgage, rating and taxation purposes.

Offer a comprehensive assets valuation and disposal service
not only to liquidators and receivers, but to industrial and
commercial clients throughout Great Britain and Europe.

Plant & Machinery

match- at .Wimniecoo. de bt Page 30 - more than in May. This is the - — — — — She was replying to a quel

_ . ■ • HAMBROS. the banking and ployment was 30,000, compared tion from Mr Michael Foot

Briefly.-- - insurance group, made profits " 5t *» 21 -°°°' teamen ^er of the Opposition, who

^ Neeme after lax of £15.4m in the year BenenUy^ January and March, and 26.000 described the figures as “the

» ‘ « "O"' 1 - in ?“ last wnor of Condoned on Beek Pej,
succeed Sir Alexander Grbspn ^ Between April and June the 298J ‘ Regional details. Page 9; . GDP

as musical director and prin- * a & e average monthly increase in This faster rate of increase -rise estimated at 0.5 per cent,

dpal ’conductor of itfte Scottish # BURNETT & HALLAM- .'the- underlying -level of unem- is probably a delayed reflee- Page 12

National Orchestra. SHU

• BURNETT & HALLAM-
SHIRE, the ndning, oil and

Page 20

Earth tremors bit ‘south west tee ^ ' —

sr^afi

were reported. . SDP leadership: a contest about power,

not politics * 19

Overseas students: the cost and benefit

to Britain ' 19

Technology: /U.S. research oppor-

; tunities ■ ...I v 10

i Commercial law: assigned claim gives
, title to sue 15

CONTENTS

CHIEF PWCE CHANGES YESTERDAY

(Prices in pence unless otherwise indicated)

Gardens today: rose varieties of the
TV era '15

Management: why three men bought
their own bank 16

RISES

Exchqr 11} pc 1986... £95i + i
TnSas ll§pc 01-04-.JS9i + i

BPB :... 418 -4- 8

Barclays Bank ... 388 + 13

Bemrose 128 + ?

British Northrop..- 18 + 6
Burnett Ballamshr ,835 + 20
Cable and Wireless 276 + 7

.... 82 + 7
r " snn + 10

Reed Intel 290 + 6^

Trident TV A 70 + 3

Utd Biscuits UO + 5

Utd Scientific 357 + 17

Charter Cons ...... 185 + 15

Cons. Gold .Efeelds... 330 + 15
Driefonteln 862 + 34

FALLS

Fleet Street Letter 90 ' 5
Irish DistiUer* ... 85 5

Editorial eonment:
distortiwis

Defence; Tax
18

Energy review: Colombia’s rich
potential -...: 24

Anwdcan Nanof M 8
Appointments ... 31

Arts -I ' 17

Bah Ritas ........ 23

Commodities ■. — 25

CommnlM UK 30,22,23
Crossword 17

Entertain! fiulda,^ ' 17

Etiropun Mem Z. 3

.Euromarkets . 28

Euro Opts- 22

FT. Ac t uartoe 31

Foreign Exchanges
Gold Markets . — .
Inti. Companies ...
Leader Rags

Lettors

Lax

Lombard

London. Opts. ...

Management

Men and Matter*.-.
Mining

Overseas News M 4

Parliament 14

Racing 15

Share Informational. 3&
Suck Marinrts:

London 31

Wall Street 26

Bourses ......... 26

Technology io

TV and. Radio — 15

UK News;

General 9. tl, 12

Money Markets 32 General 9. Tl, 12

. For latest Store Index phone 01- 246 802$

Labour 13

UnR Trusts;

Authorised ..... . 32

Others 33

Weather 36

World Trade News 8

ANNUAL STATEMENTS
Brit. Borneo ..I... 22 '

Charter Cons. ... 23

Sllentniflht 23

Whitbread 21

TO7

! OWnDN 72 Chancery Lane London WC2A1LT

LVltUVIY 01*4056944 Te/ey OOAAR

Chartered

Surveyors

CITY

01-4056944 Telex 22446

24 Austin Friars London EC2N2EN
01-6389011 Telex 22446

| ccnC 29 King Street Leeds LSI 2HP
<0532)442066 Telex 557544

afeoin Paris Frankfurt and NewYork

EUROPEAN NEWS

?:■ y'fi-r •"/

f

Jonathan Carr, in Bonn, looks at rivals for political power :

Personal prestige is the key

"}VHY SHOULD we swap a
fabulous Chancellor Helmut
Schmidt for a much less fabu-
lous Chancellor Helmut Kohl?'
asked the bewildered editoria-
list of a West German news-
paper the other day.

The question may seem to
reduce the plight of a faltering
government and a squabbling
opposition in Bonn too much to
personalities — but it comes
close to the heart of the matter
all the same.

The Social Democrat (SPD)
and liberal Free Democrat
(FDP) government partners
now seem to treat one another
as rivals rather than allies —
but they have a leader of extra-
ordinary prestige in Herr
Schmidt.

The opposition Christian
Democrats (CDU). along with
their Bavarian sisier party the
Christian Social Union (CSU).
have enough potential minis-
terial material to fill two
cabinets. But in Dr Kohl they
have a leader who for many
people, not least for rivals in
his "own party, still does not look
like good Chancellor material
despite nearly a decade of
experience in national politics.

If friction between SPD and
FDP and the poor performance
of both parties in provincial
polls were enough to dispose of
the Chancellor, then Herr
Schmidt would surely have

gone months ago. But, accord-
ing to a dose aide, there are at
least three strong reasons why
Herr Schmidt does not plan to
make it easy either for the
opposition CDU or the increas-
ingly nervous FDP by throwing
in rite towel.

The first is that the SPD-FDP
was re-elected in October. 1980,
for a further four years of office
and that the Government has a
duty to respect that mandate—
and Herr Schmidt is nothing If
not a man. of duty. Tt i$ hardly
too fanciful to suggest that if

widely held abroad. That aware-
ness is said to be constantly
strengthened by the flow of
world leaders who Herr Schmidt
meets day-in, day-out in Bonn.
True, itaeir -admiration r is often
accompannied by requests for
financial aid^-but that in itself
is seen as a back-handed com-
pliment to the basis strength of
the West German economy, des-
pite current weak growth, state
debt and* unemployment
Third, according to the aide,
Herr- Schmidt sees himself not
just, as 'SPD-FDP coalition

Herr Schmidt sees himself not just as SDP-FDP
coalition leader but as. a “ VoIKskanzler” — a
Chancellor of the people. According to opinion
polls, his standing has slipped a bit, but he is still
the most popular politician in the country.

the. walls of the ultra-modern
Chancellery were ‘to collapse
(and there are many local
lovers of fine buildings who
wish they would) then .Herr
Schmidt would still be seen at
his desk amid the ruins, work-
ing his way through his Cabinet
papers.

Second, Uie Chancellor is well
aware of the esteem in which
both he and his country are

leader hut as a Volksknnzler — a
Chancellor of all the people
True, his standing- has- slipped
a bit according to opinion .polls
— but he still remains the most
popular politician in the country.
He is even relatively well
thought of by supporters of the
CDU who would never dream of
changing to Herr Schmidt’s
party, the SPD;

-What conclusion is .being

drawn from this? Roughly, that
Herr - Schmidt . would • abhor
giving way to Dr -Kohl' who he
has described In most disparag-
ing terms.

“ The .. successor, ' to (West
Germany's- first : Chancellor
Konrad V Adenauer?- What- a
successor! My' God, My GodP'
Nor does he feel like- leaving
to please _ what he regards as
a minority ■ of second-rate
opponents In his own party,- not-
ably on its left-wing.

If Herr Schmidt goes, then it
will have to be' because the .
FDP has clearly withdrawn its ^
'support and made -the continua-
tion of the coalition Impossible.
Bluntly, the FDP must be seen
to have committed a kind of
regicide.

All that shows why Herr.
Hans-Dietrieh Genseher, - the
FDP leader and Foreign Mini-'
ster, must now be feeling very
uncomfortable. Herr Genscher
-deservedly has a reputation- as
the master conjuror otf the *
Bonn political stage, never
shutting out one option without
opening at’ least tWo'others.

But Herr .Gehscher is in a'
tight corner. His party, which
won 10.6 per cent of the vote
at the last -general election is
in the process of being over- 1
taken as the country’s thirtf -*
political force by the “Greens’*' - .'
— ia diverse movement -of ecole-'
gists, opponents . . of • nuclear

1 viv i

insu

& Dr Kohl (left) good Chancellor material? Herr Schmidt (centre) and man^ dthers doubt it
Herr Genscher (light), however, could give West Germany the "chance io find out

power, and critics of the Super-
powers (notably the United
States). . In the recent election
campaign in Hamburg the FDP
said in advance it would be
ready to-iorm a coalition with
either the SPD or the CDU —
hut failed to gain the 5 per
cent: needed for parliamentary
representation, thus- rendering
itself useless, to either, "major
party. -

In -the state of Hesse the FDP
has just -decided jao longer to
support' the Social- Democrats,
after 12 years of alliance with,
them — but - instead to -- try to
form a coalition there with the

CDU.- Whether 'the FDP dithers
or switches partners, its future
looks grim, . .[

Can Herr Genscher, in this."
situation,, afford to he seen as
being responsible for ditching
a popular- Chancellor? Gan he
make it clear -to the electorate
that it is - really the S^— not
Herr Schmidt— with which the .
Liberals qaiuiot.work?

These are the key personal-
political questions-. which hover
lover the marathon jpalition
talks which are now under way.
oh the budget for' 19?37 and
which are supposed; to -be .com-
pleted by July. 1. :On the face

of Jt^&tjisaueis whetfier. the
state* should borrow. -a few- bil-
lion D-Marks less next year by
. saving. \a.- bHIioh D-Marks

■ more- '-on subsidies,- social sec-
. urity'=payi6ents: ^id so o%

It is- relatively easy, however,
.;ta,- -raise - the. matter to Vhigh
, ideological level^ with the. FDP
inssting . on , “'consolidation of
.-state finances.” ' above allt n n d

■ demanding cuts which the -SPD
simply could,! never accept -The
chance.- is-, there- for Herr -Gen-
-Tsdher.’ Jpo break , and run if ie

wants to fake it Herr Schmidt,
tor. his staybag-piK—

pending. .a ..desertion. ? . . r- . :

Prospect of further stagnation in West German economy

BY STEWART FLEMING IN FRANKFORT

THE WEST Germany economy
has stagnated for almost two
vears. In the first four months
of this year industrial produc-
tion was only abour 2 per cent
above the depressed level of
last summer.

There is little prospect of a
further decline in interest rates
in the immediate future, on the
contrary, long-term rates have
risen significantly in the past
month. Export sales, the one
sector of the economy which
has been buoyant, and which
rescued West Germany from a
fully fledged recession last year,
are “ running out of steam."

These are the main conclu-
sions of the half-yearly econo-
mic assessment of the
Bundesbank, the West German
Central. Bank, released today.
The report puts the best face it
can on what is a depressing
picture.

The opening section devotes
most of its space to the positive
side of the economic balance
sheet. The current account, it
says, was virtually in balance

for the first five months of the
year. Consumer price inflation
ran at an annual rate of only
3J per cent. Corporate profit-
ability and corporate -finances
are' improving and domestic
demand .has not weakened
further. -

But the Bundesbank's latest
assessment provides little cam-
ford for those in Western
Europe who have been hoping
that the. region’s -biggest*_and:
through the 1960s and 1970s
consistently most vigorous econ-
omy, would in <the second half
of this year spring back into
lire — thereby fanning the grey-
ing embers of Its neighbours'
spluttering economies.

• The Central Bank carefully
refrains from drawing any con-
clusions about 'the future from
its analysis but the report pro-
vides no comfort either for the
coalition Government in' Bonn.
Between the. coalition, partners,
the Social Democrats and the
Free Democrats, mistrust and
confusion are already rampant.
That, in itself, is another ob-

stacle to a revival in business
confidence, and to the recovery
in capital investment which all
agree is essential.

The chaos in the Government,
the renewed rise in dollar
interest rates are some of the
obstacles to the Central Bank’s
efforts to lure West 1 German
Interest rates down further. The
Bundesbank report points out
that although the West German
current " account “is moving
towards balance after last year’s
DM 17bn (£3.97bn) deficit, the
capital accounts of the balance
bf payments have become a
problem area. “The structure
of _capital transactions has
recently clearly deteriorated," it
says, adding * that between
January and April. long-term
capital outflows totalled
DM llbn. • ,

The’ Deutsche -Mark is
recognised as a cheap currency
in which , to borrow and the
doHar.is attractive as an invest-
ment currency. There are stock
market fears, however, that the

Government In Bohn will, as has
been suggested, try to increase
its revenues by taxing interest
at source, and this is encourag-
ing an outflow of capital.

The climate has deteriorated
even in the past few weeks.
Earlier - in . the .year private
economists were confidently pre-
dicting that .a combination of
the deliberate easing in Bundes-
bank monetary policy begun in
October and the growing , con-
fidence in the stability of the
Deutsche Mark would lead to
short-term interest rates of
around 8 per cent this year and
bond yields at around 8i per
cent.

Indeed, as the Bundesbank
. at the beginning of May -aban-
. doned the “ special Lombard,”
which had been 12 per cent in
‘October, and reintroduced the
normal Lombard rate for lend-
ing to the banks at 9 per cent,
the average yield on Govern-
ment' bonds was down to 8.68
per .cent Yesterday average
bond yields were up again at
9,36- .per ...cent. , Dr Klaus

Wieners, thief economist :at the
Westdeutsche Landesbahk says
that “this reversal alone will
; tend to delay the recovery that
was expected in the second half
of the year.”

According, to the Govern-
ment’s predictions at the begin-
ning .of the year recovery was
supposed to be strong enough to
bring a real - growth • rate of
around 1| per cent in gross
national product -this year and
3 per cent growth in 1983. This
forecast seemed to many to be
aimed primarily at bridging the
: political gap between the coali-
tion partners on economic and
budget policy.

The current economic reality
makes depressing reading,
especially when it is recalled
that official strategy a year ago
was relying on a combination of.
export-led growth, re-stocking
and falling U.S. interest rates to
pull the '-economy back into
growth. ■' ' '

According to the Central
Bank’s . midyear report, real ^

.gross national ^product (GNP)
remains unchanged in the first
quarter of lie year in* compari-
son Kith the first and -the fourth
quarters of 1981 on a seasonally
adjusted basis. Steal consumer
spending; .reflecting; the 1 per
cent decline- hi- disposable
incomes- since the first quarter
of 1981, is flat. Seasonally
adjusted real capital spending
(which fell 3 per cent- last. year)
is also" down on the- fourth
quarter of 1981. ■ f >

The Central Bank concludes
that although production and
demand have stagnated there
has 'been a '.shift in the
economic scene.

It' is • precisely the former
development which is causing
the greatest concern. Last year’s
export boom— foreign orders
rose by 16 per cent. in 1981—
transformed what threatened to
be a substantial decline in real
GNP In -.West Germany Into a
year of stagnation:; .

. . In the first' four months of
fins year foreign" orders 'are 1
J— — • J ' 1 - I-.,-

per cent down, from tfae higb
level of the fourth quarter.'of
198 L The Bundesbank: suggests
■ that -weakening ^demand ifrbm.
developing and. Opec: Cbuhtries;
and continue d siu^feh economic
: activity in Western industrial
countries, as beginning to affect
foreign orders. The German
'Motor 1 Industry -. Association
yesterday reported, forexample,
that car exports are beginning-
. to. slow.. ,. s ■ \

- The" . Deutsche-. .Blink,:. : West
Germany's leading commercial
bank,'- -fins <fecfentiy i suggested
that the "re-stocking which gave
the 1 economy a : fitfip ’.in tile
first Quarter 'may peter' out as
companies _ hegin- to measure
. their : shortening’ order- books
against their production sche-
•dules. .. • •; -v V ' ; -

: . Thus . it -.would oppeair tbday
the", .best that'ean 6e hoped tor
from the West_Geiman economy
at. present js; more stagnation,
with the -.-question: mark -still'
hanging over- the timing of "a’
recovery. ' • V f

"A to .

, ;FEW' '!HlNGS y aro T iEmrtr

; . likely ffe set-*itaxm beH* ring-
lag' taTVes* : BeritiK lhaa *
r-Mtif; from Bonn, that, its.
DM I3hn (£3bn) in finagrtal
suppert and. srabsittiestot ' the
titymay i b e .reduced. : -

^ Wesf BerGn Is awasJfw&fi
reports that, one oi? tbe : in«jt
sacrosanct sfibsidte^^Htlre tide:..
free‘8 ; per. cenf cash -sup-
'• plement .for each employee—

. is abotit to .be e&tahutefL
Anoflier clahns title ; Bqufl

Govenfmeirt reaidy ‘/.-.to

abolish . the. suhsfdies on air
fares, between 1 '.West : jyrHn
and West Germiafe .
Although -West ' <Ser*04tt .
' officials . reftdn Such reports,
they. 1 ^owtherextreme/ Sen-
sitivity of tbejsrflated'day.

Bond ts :piy^;^'pCT''«Ht
_• of West BeritoS _T)8f ■ l0^b B
' ( £2J38bHT b&4gfi^^Ma--’with
unwnplbymftnt ^aring y per
; cehfc In' fl» federal

Government f^ tttifikety ^to
spend less nett year. - But
' when Bom* ev^ - sugge^

-. there t might ; be .someT pt ?
v iridCh ‘ btr Thired from

V ifa. -subsidies*; ; West Berlin
p reaete- ivitii ^pained •-• inriigaa/--
tioi£ ; r.

West Berlin, commeidstors
^bave^ afirndnSshed, thei West -
Gennans tp remember 'that
the’ djy is a. " national .task,’'
not just another yatstretched -
palm. 'J •-

; West Beriiners benefif from
30 per. emit r.towfic^ineame

• taxes than, West Gerthans and
receive DM 4&S#' -taLSS)

-monthly' for ;eaeft'- rtifld in
-addition to the' p^rtnai West
- German family /^owaiKe.-
There are aWfeonjideGdile
: advantages for b'usihesses in
“the city- Bin : the financial
incentives, have presented
a sharp decrease in manu-
factoringjobsiita citywhtch
stm prides itself tm being the
biggest 5 : industrial . ^ city
._ between Paris, and' Mfliscow.. .

- West Bertin is expected to
lose' another' 9,009 industrial

- jobs tbis. year ; redmdhg the-
total “ to 170,000 and more
are expected to be- Ib^.Or the

■ ; pffing i Af^Teleftflak en-
-■ edmpany,is one of -the -cHy's

• biggest employecre*

- AEG abandons -deak^Tagn S

FINANCIAL d« ily

•xctpt Sundays -. «ntf / WoWayi. - u.S.
subscription ratas SSK.CO'jnar ■irifiutn.
SecoOri Class pomng» paid - at New
Yoric, .N.Y., and st-^addltionHl - parting
centres; T 1 ■

%

r -•

a

- 3<

r.

1, -
^" r

rA ■

l*,. ,

-.r?

•j 3 /:

0

j‘ ,wm

I :

:'?2

Jn

r

:-r;«

J L ;

• . “

1981. A Year's Work.

Business, volume

in the course of the year in DM bn

[ 120 -

Dec. Feb. April June Aug. Oct. Dec.

Balance sheet
total 1971 -1981
in DM bn

Development of business volume.

B 1978 □ 1979 .□ 1980 ■ 1981

Development of balance sheet totaL
M Deutsche Bank Group sm Deutsche Bank AG

of Germany is setfled via Deutsche Bank.*-

Cautious business expansion and
further earnings increase.

The bank's eamings-oriented busi-
ness policy also proved reliable in 1981.
The operating result again increased
substantially. -But in view of the difficult
situation of a growing number of compa-
nies, sectors and debtor countries we
again considered it advisable to make
greater allowance for risks through ad-
justments and provisions.

The capital increase in Apri!1981,which
strengthened the bank's capital and re-
serves to DM 4.87 bn., provided new
scope for growth, only part of which was,
however, used to expand the volume of
credit extended.

In *1981 the business volume of
Deutsche Bank grew by 10% to DM
118.2 bn. In the Group business volume .
reached DM 196.4 bn., which was DM '
18.3 bn. higher than one year before.

Brisk foreign trade business.

Deutsche Bank strengthened rts mar-
ket share in foreign commercial business.
Above-average growth was achieved,

. especially in the settlement of export
business..- - -

■ Ouribreign-branches have widened
and intensified their business links with
local corporate customers^ Following the
liberalization of Eurobusiness in New
York, our New York Branch set up an inter-
national banking facility; It is ’therefore
eligible for the advantages resolved by
the Federal Reserve* Board for interna-
tional transactions. -

in 1981 we again exercised deliberate
restraint in syndicated Eurobusiness. We
participated only in a number of selected
large credits, mainly in the U.S A, Canada
and Mexico.

as well as in money and foreign exchange
dealing^and takes part in project financ-
ing.- ,

At the end of 1981, Deutsche Bank op-
erated 13 foreign branches and 7 wholly-
owned subsidiaries abroad. Taking our
affiliates and representative offices into
account as well, we are represented in
53 countries by 90 bases.

Expansion of foreign network. .

In May 1981, we opened a branch In
Barcelona. In September we opened a
representative office in Pelting. On Octo-
ber 1, .Deutsche Bank (Canada) -com-'
menced operations inTororrto. Itengages
mainly in corporate customer business.

Successful foreign subsidiaries.

Deutsche Bank Compagnie Financiere
Luxembourg expanded its creditvolume
by DM 4.1 bn. (converted) to DM 17.1 bn.
Tfie operating result increased markedly
arid permitted comprehensive provision
to be made for the risks in international
. lending business. The reported profit of
DM 42.3 m. (converted) was - as in the
past - allocated to the free reserveto
strengthen equity capital. - ' . ’■ "T . .

. Our subsidiary in South v East .Ase^ .
Deutsche. Bank (Asia Credit) Ltd., Singa-
pore, was able to consolidate its position
further. At year's end the balance.sheet
-total came to DM 21 bn. (converted -
previousyean DM 1.7 ba).

Atlaniie C^piMCdrp6ratioh'-(ACC^our^

investment banking subsidiary in . New -
■York, continued to expand, its . national and ;
international activities. . • ' -V

: A large increase was recorded in busi-
ness with private and institutional invests
ors and in own-account trading. ACCtook:
pa.rt in a rranging over . 3 OO issues of hew . ;
shares and bonds, Overancfaboyethat, rt •
again participated inthefinandng of Euro-
pean companies' investment projects in
theU.S A (bond financings, leasing traris-
actions, acquisrtions’-etc.).. ; "

. . Deutsche Bank (Suisse) S.A^'whfch
devotes its attention primariiytd portfolio ’ .
investment business with our. interna-
tional private customers commenced
operations in Geneva andZurich in June
1981."

.Successful EBIC affiliates.

The ffilC banks, in which we ttjgether
with our Europearr parkier bartte-inEBIC
have a holding, registered good results
again in .1981. • • -

European Asian Bank AG; Hamburg;.

Growth in Euro-issuing business. ^

; . in; international, issuing busings the
emphasis ' in our actiwtieS shifted to the
&irodollar s ector. Altog ether we acted as.
lead manager, manager or co-manager
for 139 Eurobond.issues (previous year:
128).- The largest individual transaction
under.ourlead mariagerhentwasa US$
500 m. bond issuefor theWoridBahfc

branches of te own, increased Its balance
sheet total by 30% to DM 5.3 bn.; Eiirp-
pean American Bank (EAB), Nbw York;
reached US$ 8.1 bn. and Banque-Euro-
peenne de Credit (BEC), Bnfesels;. ; ec-..
panded-its balance sheet tote! by 45%&
Belg.frs. 155:7 bh. ; -

. -European Banking Company; 't£t.
(EBC), London; European Arab Hbtclrng'
SAy Luxembourg and,Eurb-Pacifi6' Fi-
nance Corporation Ltd., Meiboume^also';
recorded considerable growth in fiieir

te!ancesheettotaisandoper^ingresiifes. :

in 1981," •

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Financial Times Wednesday June 23 1982-

EUROPEAN NEWS

French Cabinet | Brakes put on chaos of MEPs’ expenses

approves price
and pay freeze

by cues mbwitt m ujxmqurg

^ BY BA*® WHITE IN- PARE

THE FRENCH Government will
_ .table legislation tomorrow- to
enforce its planned freeze on
wages and prices up to the end.
of October. /

The - law approved by the
Cabinet yesterday includes a
ceiling on company dividends.
These will be allowed to rise by
no mote than 8 per cent a year
on average in 1882 and 1983.

The wage and price measures
. will be made retroactive from
June 11, the last week-day
before the announcement of the
austerity package in the wake
of .the devaluation of the
French franc.

The wage freeze applies to
employees throughout the public
and private . sectors. . But an
exception is made for workers
on the minimum wage, who are
due to receive a 3.2 per cent
raise to FFr 19.64 (£1.64) an
hour on July 1.

This concession comes after
pressure from ' both trade
unions and members of the
Government's par liam entary
majority to protect living stan-
dards in the . lowest income
brackets.

Coramensatory relief measures
are to be' offered to employers
to cushion the impact of' the
minimum wage increase.

The only other exemptions
are!, for long-service premiums
and ■ genuine promotions.
Penalties for infringement are
fixed within a range. of FFr 600
to FFr 1,200 per employee.

In order to impose the
freeze, the Government has to
suspend a 1950 law guaranteeing
free collective bargaining for

-the four-month period but It has
promised to ' restore the
principle of free, negotiation
after the cut-off date.

Both . the left-wing CKpT
union, which bad proposed a
renegotiation of existing - pay
agreements instead of resorting
to- -legislation, and - the
moderate Force Oizvriere pro-
tested against this move.

M Pierre Mauroy. the Prime
Minister, who initially declared i
himself in favour of a
negotiated settlement, ' has
invited unions and employers’
representatives to a second
“ round table " meeting on Jufiy
15.

The Government is already
taking precautions to avoid a-
sharp wage increase when the
freeze ends- in November. It
plans to draw up brancb-hy-
brandi moderation pacts lasting
to the end of 19S3. based on
the target annual inflation rates
of 10 per cent this year and 8
per cent next year, with pro-
visions for raising real earnings
among the lowest-paid.

An early exit from the freeze,
from the beginning of October,
is to be allowed in certain
instances on the basis of these
agreements.

Current legislation covering
price controls is to be extended
to cover rents and some utilities.
The main items excluded from
the price freeze are petrol and-
p reducers prices for farm goods.

The Government is to make
issues of confidence both of its
general policy statement in the
National Assembly today and of
its wage-price law tomorrow;

Mitterrand has cool
reception in Spain

BY ROBERT GRAHAM IK MADRID

THE FRENCH President M
Francois Mitterrand, yesterday
began a two-day official visit to
Spain in an atmosphere of barely
concealed hostility on the part
of his hosts. No visit to Spain
by a bead of state since the.
death of General Franco has
been treated so coolly- or had
such tittle promise of positive
results.- -

The -Madrid Government -was
puzzled by M. Matteoand's re-
quest to visit Spain during the
World Cup competition and, in-
deed, it seemed that originally
. he intended just to watch France
play foothaOL The Spanish did
their best to dissuade' him from
making it an official visit, point-
ing out that relations -were at a
dedicate phase end that little
could be achieved.

The basic reason for Spain's
hostility^Hamply reflected in
editorials yesterday — arises
from France’s perceived toier-
ance on. French soil, of leading
figures of Eta. -the militant
Basque separatist organisation.

M. Mitterrand has refused to

allow Spanish petitions to extra-
dite Eta members. This has in-
furiated Madrid, which believes
that tougher control of Eta -in-
side France .would considerably
aid the fight against terrorism.

As a gesture to soften such
criticism, the French authorities
two weeks ago detained 28 Eta
members for questioning. All
were released except a man
nick-named “ Txomdn,” who is
regarded as the leading mem-
ber of. Eta's hard-line military
wing. .

The other bone of contention
with France is over its attitude
towards Spanish membership
of the EEC. In Madrid, the
French are widely regarded as
the chief impediment to a swift
conclusion of the negotiations
or Spanish entry. There have
been bitter rows over alleged
French tolerance of angry
farmers in the South of France
destroying Spanish produce
being carried in lorries and by
train — not necessarily for con-
sumption in France.

URGENT STEPS are - to be
taken to halt, the “chaos’’ of
MEPs' personal expenses, says
Mr Piet Dankert, president of
toe European Parliament.- .

-Mr Dankert emphasised 'that
Investigations into toe row. over
EEC- parliamentarians* expenses
which broke in Strasbourg last
week have failed so far to estab-
lish any deliberate fraud In-
stead, he pointed to a. break-
down in the parliament's
accounting system. ^

During a Press ~ conference
called to discuss toe parlia-
ment’s bid to secure wider
.budgetary powers inside ttrtj
EEC,- Mr Dankert disclosed that
the- problems over MEPs’ per-
sonal expenses extend farther

Romanian
debt move
expected

:"By David Buchan,

East Europe Correspondent

RESUMPTION or lending
this week by the International
Monetary Fund to Romania
should speed up the reschedul-
ing of the country's heavy
commercial and official
foreign debt, bankers In
London said yesterday. .

The IMF executive, board-
approved on Monday a -1982
economic programme under
which Romania can draw a
second 5500m tranche of
the $L2bn (£690m) standby
credit It was granted last
year. The Fund lent Romania
5154m Initially, but -last
autumn halted further pay-
ments as • the Bucharest,
government began to fall into
arrears on its commercial debt
repayments. . v

-After several months fit
renegotiating the conditions
attached to the standby loan,
the IMF Is believed to have
won assurances that farm
prices will be raised progres-
sively to reverse the neglect
of agriculture, energy prices
will be Increased to encourage
conservation, wasteful invest-
ment will be pruned, and
Interest rates will be raised on .
hard currency deposits to pre- -
vent (hem draining out of the'
country.

The IMF has also been
pressing Romanian officials .
for better economic informa-
tion, a move welcomed by
commercial 'bankers wbo have
insisted they can make no
move on rescheduling $3 bn of
Romania’s 1981-82 foreign
.debt .until they are given a.
more. Accurate picture of the
country’s economic prospects.

Romania owes around
flObn, less than half file
Polish, debt - "But ; the
maturities on these, loans are -
badly bunched, so that,
according to some estimates,
more than a third of this Is
due for repayment this year.

Part of Romania’s- foreign
debt— -more than 51bn— is fn
the form of export credits
guaranteed by Western
governments. It Is considered
likely that these governments
wfli have to agree on some
rescheduling to postpone re-
payments of these official
debts, in line with action by
the Western banks.

than .first thought.

Some 80 'cases of “chaos”
and maladministration have
already been brought to light
In which -members of toe Euro-
pean Assembly, for one reason
or another, have received more
in' fl p fj h payments war-
ranted.

Mr Dankert said repeatedly
that he was unable to put a pre-
cise figure on the sums in
question, -although a ceiling of
86bn (£3.3bn> was being cited
yesterday as the total of out-
standing-accounts under review.
- It also emerged yesterday that
' a sizeable proportion of the EEC
funds that have, escaped tight
budgetary control may have been
paid to MEPs from the Irish

Republic.

Owing to a confusion between
values of the Irish punt . and
sterling, some Irish parliament-
arians are understood to have
been receiving a bonus in the
form of sterling payments made,
in error since 1979.

Mr Dankert refused to com-
ment on suggestions- that Such
payments may have been re-
ceived by politicians who sub-
sequently became members' of
the Irish Government

The European assembly, how-
ever. did make It plain that the
investigation into undeserved
expenses payments from the
parliament’s cashiers extends
beyond MEPs from Ireland and
the UK

Mr Dankert’s concern to ex-
plain that fraud has not been
an element In the row under-
lined the lade of control exer-
cised by the parliament's admin-
istrative staff over the 434
members’ spending.

The admissions of chaos made
repeatedly yesterday by Mr
Dankert jarred embarrassingly
with the parliament's latest
attempts to gain greater politi-
cal; control over Community
spending.

Mr Dan kert said that- so far
. only one MEP had been asked
to pay back funds, although
more would shortly be asked to

• Mr Dankert (right): no
deliberate fraud

Investors look for easing
of Portugal’s regulations

BY DIANA SMITH IN. LISBON

PORTUGAL: HAS improved as a
credit risk in recent years,
according to Sr Alexandre Vaz
Pinto, the- president of the
country’s Foreign Investment
Institute. He was speaking on
the second day of toe Financial
Times conference: "Portugal —
anew outlook.”

“After the revision of the
1976 constitution, it should not
be expected that the ambiguities
characterising toe present con-
stitution will be completely
removed in the - pattern of
economic organisation that will
be defined,-’ he said. .

However “I am not con-
vinced that the persistence
of -those ambiguities rep re-
seats a serious obstacle as far
as attracting foreign investment
is. concerned — provided the
Government’s performance
helps pragmatically to clear up

doubts. . .. - ...

“After toe re vision of the
constitution, the Government
will send to Parliament a new
law on the limits of public and
private sectors which will allow
the opening up of soyne
forbidden so far to both
Portuguese and foreign
industrialists.”

Sr- Vaz Pinto stressed toe need
for a, medium-term strategy
which, he said, was imperative
for the public sector and rndira-
tlve for the private sector. Be
hoped .toe Government would

focus its attention on “us
strategy very soon.

Mr fihiro Miyamoto, adviser to
toe long-term credit bank of
Japan and' to toe Ministry of
International .. Trade
Industry, said Portugal’s invest-
ment incentives are relatively

attr a ctiv e compared with those
of other Western European
countries. A considerable long-
term advantage is Portugal s
suitable location in the logistics
of re-exporting to the pronnslng
market of Africa.

However, he said,. Portugal is
Snot necessarily toe most
favoured place, for Japanese

PORTUGAL-
a new outlook

enterprises to invest. Britain
has absorbed the biggest portion
of direct Japanese investment
so far because toe language
barrier there is relatively low
and because the UK has been
making considerable efforts to
invite foreign inve stme nt

He praised the UK’s promo-
tion offices in Japan and sug-
gested that the Portuguese
should make far more energetic
efforts to promote their
country's image in Japan and to
intensify contacts between
Portuguese and Japanese enter-
prises.

Mr Miyamoto warned that the
lack of information about Por-
tugal in Japan since the turbu-
lent days, -of the revolution
meant that many Japanese
entrepreneurs tended to look at
it as an unknown, apd there-
fore high risk, area.

Mr Michael Billyard -Leake,
representing Mr Tarek Kassem,
chief executive of toe Arab
Bank Investment Company,
warned that the. pattern of Arab
investment was generally grad-
ual. and. that Portugal's foreign
investment * priorities might
not be suitable for Arab capi-
tal. However, he quoted -toe
example of the establishment
in Spain of toe Arab Spanish
Bank as a possibility for Portu-
gal to foUqwin in t he d istant
future or 'Arab participation
with local interests in ja private
investment company in Portu-
gal.

He also' suggested that, tour-
ist development might be an
attractive inducement to an
initial Arab presence. . .

\ Sr Fernando Faria de
Oliveira, Portugal’s Secretary of
State for Export, standing in
for Sr Bayao Horta, the Indus-
try Minister, set out the basic
guidelines for increasing Portu-
guese exports and of general
industrial policy.

The main, corrections of
Portugal’s deficits bad to be in
the food and energy balances.
However, it was nece$pary to
build up exports in a lasting
manner.

Both products "and markets
had to be diversified consider-
ably and weak areas; like toe
export of services, had to be
increased.

"Joining toe European Com-
munity “ offers us enormous
potential which ' can; help de-
cisively to solve many of - our
structural problems. But the
conditions under wlnqh. we join
must .be appropriate to our
level of development.’’

Sr Orlando Morbey Rodrigues,
head of Phillips of Portugal
and a vice-president of the
Portuguese Industrial Associa-
tion, called on industry to
improve its technological com-
petitiveness and stressed the
role of small, and medium sized
companies in. the' growth of
■Portugal’s economy. ,

He accentuated the need for
increases in productivity, but
praised Portuguese workers and
asked for greater capacity for
introducing innovations and
the promotion , of regional
development.

Mr Francis Stankard, execu-
tive vice-presiednt of toe Chase
Manhattan Bank, had praise for
Portugal's credit-worthiness. He
said that Chase Manhattan had
always had a Very high regard
for Portugal,' its hard-working
people and Its .'centuriesold
culture. ' .. ' ...

However, he ...warned that
there. werp : some factors which
were less, encouraging, like toe
heavy public;, deficit and high
inflation*

Italy urged to rush through
laws on bank shareholding

BY RUPERT CORNWELL IN ROME

SIG NINO ANDREATTA, the
Italian Treasury Minister, yes-
terday urged speedy parlia-
mentary -ratification of laws
compelling banks to give full
’details of their shareholding
structure and to produce con-
solidated results which covered
the activities of subsidiaries.

At the annual meeting of toe
Banking Association in Rome.
Sig . Andreatta declared that
had such measures been in
force, they would have pre-
vented, or at least limited, the.
crisis gripping Banco Ambro-
siano, head of the country’s
biggest privately-owned bank-
ing group.

- Events had shown, he said,
that the powers vested in the
Bank of Italy by the present
laws were not enough to break
down the screens put up . by
major shareholders to protect
their identity.

The two laws would provide
both for a detailed picture of
the ownership of private com-
panies and banks quoted an

the Bourse, and enable the
supervisory department of the
central bank to - assess the
standing of a bank, taking into
account its various holdings,
including those based outside
Italy.

Ambrosiano had been pro-
mising its first ever consoli-
dated accounts covering the
years from 1983 on. But
hitherto- its myriad foreign
subsidiaries, where 'many of
the main doubts about the bank
are concentrated, had escaped
scrutiny.

Sig Roberto Calvi, the-
bank's chairman, who was
found dead in London last
week, is widely believed in
Rome to have taken many
secrets with him to the grave.

Events on the Milan Bourse,
nevertheless, suggest that the
market is regaining it nerve.

Sig Andreatta declared that
the banking system would Tally
round to contain the crisis, as
in other similar occasions on
Italian banking history. It was

separately reported in Milan
that major banks had arranged
a substantial injection of
liquidity into Ambrosiano via
the interbank market, to
bolster confidence further.'

Meanwhile, the three com-
missioners sent in by the Bank
of Italy are stepping up their
drive to throw light on Ambro-
sian o. The aim is understood
to be to prepare a new set of
. accounts, reflecting the bank’s
true position on June 17, the
day that the central bank took
charge of its tangled affairs.
The commissioners are also
following the bank's accounts
on a day-to-day basis.

But there is still widespread
apprehension over the secrets
that might be uncovered,
particularly concerning the
exact ownership of Ambro-
siano. Before Sig Calvi's death,
it was assumed that he held
effective control through a
number of obscure foreign
holding companies, but . the
position had never been clear.

EEC job

trends

worsen

LUXEMBOURG — Unemploy-
ment trends in the European
Community continued 'to rise
last month and showed no sign
of a downturn in the short
term, the EEC Statistical Office
said yesterday.

The number of unemployed
dropped by 1-8 > per cent to*
10.2m in May. The drop was less
than usual at this time of year,
indicating a further deteriora-
tion of the labour market It
pushed the seasonally adjusted
figure of unemployment above
10.8m an increase of 1.6 pec
cent over April
The statistical office said:
“ The seasonally adjusted figures
illustrate clearly that. In the
EEC as a whole, the upward
trend in unemployment has
continued now for some 30
months.”

The unemployment rate in
toe 20 EEC countries was 9
per cent at the end of May,
compared with 9.2 per cent in
April and 7.3 per cent in May,
19S1.

Agencies

Parliament
rejects 1
Poland’s
draft budget

By Christopher Bobinskl In

Warsaw

POLAND’S PARLIAMENT has
rejected preliminary budget pro-
posals presented by the Govern-
ment last month and has told
Mr Marian Krzak, the Finance
Minister, to devise a new version
of the budget by the end of this
w cc k.

The Budget Committee wants
to force the Government to cut
back toe Z1 36Sbn (£2.45bn)
deficit which Mr Krzak had
originally proposed.

This is the first time Parlia-
ment has intervened so strongly
and marks its emergence as a
new force in the never-ending
straggle for resources by the
various industrial and political
lobbies in the Government.

MPs are seeking a reduction
in government subsidies to
industry which had been >
planned to absorb around half
of public spending this year.

Some of the drive behind their ,
action comes from a group of
advisers to Parliament, includ-
ing Mr Henryk Kisiel, a former
Finance Minister, and Mr Jozef
Pajestka, an economist and one-
time deputy head of the Plan-
ning Commission.

The Budget Committee has
also criticised the compulsory
loan — amounting to 30 per cent ■
of after-tax profits — -which state
enterprises must make to the
Government, and which Mr
Krzak is proposing to cover part
of the budget deficit

The loan is unpopular among
managers whD see it as a blow
to their fledging Independence,
granted under economic reforms
introduced this year which per-
mit them to spend profits as
they see fit i

Reuter adds: The military
regime is preparing to dismiss
university teachers whom it con-
siders to be political opponents
or academic deadweight, accord-
ing to Mr Benon Miskiewicz, the
Minister of Higher Education.

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: I

OVERSEAS NEWS

■r 1- « _ ._. _

-. A*» "*«.r wn- , l Mi l ;'4S^

War fear unites Syrians behind Assad Government

BY PATRICK COCKBURN IN DAMASCUS ■ . * - - j

“KALAM FADI — empty words,’* hotels, their sweetly dressed* Party. Criticism of the regime fillings between two-lowwalls. all cometo Damascus, followed in future for: any Arab riders

said a Syrian switching off the wives and daughters looking . .today is less than at -any time But since- February there by some . 2,100 vohmteere. who- wishes in tap his head

Damascus television news and like illustrations from the pages . since; 1978. The Moslem Brother* have been no bombs. The Although itisdifficnltlodetect firmly ;aitached to his shoulders

tuning his radio to a foreign of Vogues hood, which led an escalating Brotherhood appeals to. have much .warmth'.' between Iranians to he seen ml?© friendly with

Muldoon

prices ai
incomes

stat i 0 n There is a shortage of lemons, guerrilla war against the .regime been crushed by the course of and Syrians, there' is no doubt the US:-

But since its ceasefire with used extensively in Syrian cook- in the late 1970s. culminating in Government retribution and about the practical value of the inevfcto*

Israel almost two weeks ago, ing, and previously imported the uprising in the city oi Hama because, whatever the Govern- affiance to both sides.

' the u* ;. :. •>' ByOaJ Hayward in Wellington

PraneAGmsfer.

teievdabn'.bibiad-

The. solidarity with the forap^ketof ^ bSSTreihilL Brians S

Palestinians declared by Syrian _ Yet, to look at the tranquil “ . .

There is also a (feeling that Saddam Hussein in Iraq.

Why Warrington shouM -be

quite, so adept at cutting' Bts own smyice . dhax ges^ f orest
throat in the: Ifiddle East has

puzded dlpiomats ' here m : JR.g2SSS2EsSS6^5
Damascus -and . no 7 doubt redace. New Zeateod s /in ffatfon

delighted be :»•*«£■** J?5f ; STSy£StSS-

SSJfS £L-ff 52 St

mentknows that what it terms popular mind. There is a wide now have walls m front ofthem omynow is*n-Arg $ummrt«r - .age : over- the Saudis and the position of Syna » mm*

“toe iSateSc balance of spread belief -that in the long- to prevent car bombs, - a Foreign ■ Mhusterar meeting Gulf .states who subsidise the stronger but lias does not tw

nnSir asSist it In a Weak term, warto unavoidable, favoured weapon. of toe Brother- being organised. To toe east. Syrian economy and war resolve the immediate problem £

Sat ‘of restrained debut* even if the Syri^ do notwant >»?%*!* 3?,. SSL >**$ . £r the M'tubbM&r ««S£?2SS£SgSSS»

of restrainea aenance even u lug Syrians uu uw. warn. — w», -**«»• ~ .hv .« — — « — » • . mo wtu ia <*nu iuudy aic u«iujj ±ur ai.uk> w. Wfnorc nr-* *vio<tonn

Sst w“kend, toe Government to fight. Israel will attack them, the door. A bomb to Damascus enditsdisastro^^wrtb ^ irightened-.by Tehran.- By act- by Israel and an. An* capital

noted that “toe Syrian army The depth of this feeling is con- last December killed 175 people, while Jordan sM. enrages in. : ihg- as- mediator between the under siege .

cannot leave the Golan Height cealed rather than revealed by caught by the blast to a crowded verbal sniping with Damascus;- two, President Assad can The tovaslonbas. iiBtitutional-

and go to fight Israel to the official propaganda machine, street Yet for the future shape of . dearly strengthen. bis hand. ised the crisis in the Middle down itS^ own um ataon, rate.^ ^

Yet for the future shape of edeariy strengthen his hand.

Soviet, U.S. Israeli force
fleets step ‘far more

nrAGAIlPA than heeded 9

up presence

WASHINGTON — Both toe
U.S. and the Soviet Union
have significantly increased
their naval power to the
Mediterranean following
Israel's invasion of Lebanon,
Pentagon officials say.

U.S. Navy strength in those
waters rose sharply over the
weekend to a total of 52 ships,
including four aircraft car-
rier battle groups, according
to the officials. This was
believed to be the largest dis-
play of U.S. Naval power to
the Mediterranean since the
1973 Arab-Tsraeli war when
about 60 American ships were
there.

Meanwhile, the officials
said the Soviet Navy has
raised its presence to 39 stops
— higher than normal bnt
well below the 96 vessels
which faced the US. fleet in
t!i« "Mediterranean in 1973.

Only last week. Pentagon
snekpsman. Henry Cattn,
reported the Soviet and U.S.
navies each had ahont 30
naval ships In the Mediter-
ranean.

Traditionally- both toe US.
and the Soviet Union Increase
their naval power in toe area
when ever the Arab-Israeli
feud heats up.

Although this increases toe
risk of U.S.-Soviet conflict,
both superpowers have taken
precautions to crisis after
crisis to avoid escalating their
demonstrations into actual
clashes.

In this case, officials said,
toe US. naval build-up had
been planned for some time
before the Israelis invaded
Lebanon more than two weeks
ago.

Twp battle gnrans, Inctod-
inv the aircraft carriers For-
rests! and Indeoondeece.
were dne to sail from toe
US. cast coast to renlace two.
other carrier grnnns which
have been on station.

Traders count their
shekels as banks
service the troops

. ''V'^sisS

■ >' -w* v;--. mm*, m i

>4- , :

^"'1'

and SO 10 UgUL Israel in me omutu }UVir«K>U<ua uiauuue, ausvu ASk 1U4 ouape julcoujf oucugunsa, Jjia. Iifliju. IBCU — T ™ liriirifn.T tn

Lebanon " oozing out sham militancy to a In some cases these. walls are politics to the Middle East, it*. 3ar -udditiou the Syrians feel East, ensured that no political _ The

Certainly there are few signs never-ending stream. .. bleakly . functional . concrete is worth, noting the speed with., -tiiat the fcraeli tovpaon-aHd : the settlement wfli he reached and

of war in Damascus. Wealthy The belief that Syria itself Is blocks, in otoers the. security which Iran has offered aid to muted American, response to it that to toe future; as in the w /wmiesqiw^u^ soraj

Lebanese refugees throng the in danger clearly strengthens authorities have shown a sudden Syria. Its Foreign Minister, have" proved its P°int about past, -relations between Israel or toe Hinammi'. wit . or, tub

lobbies nad swimming pools of the Government of President interest -to horticulture and "are Defence Minister and head of Washington’s duplicity- It will and the Arabs .waHbe settled ec J™ >m *.V 'i;* '

the Sheraton and, Meridieu Hafez and the ruling Ba’ath planting shrubs .to the earth the revolutionary guard have ^cjtafflly ,-te much nrore, difficult bF

' " * earners*' the' . Goverameiar bas^

offered income '.tax outs from-
Octofeeri : Tbage - vrifl -‘.be.
announc ed to toe budget: at the
«nd of Jicdyl ParfiamMt which
has .Been to" recess stoce early
June; wall he recaUed on July
2d to dismiss ibe measures/:

Du ri-rtg the past moctii there
has ‘ beea. - h ■ spate : of price
increases, covering a wide range
of goods anri sendees, including
bread, beer, fmgk , : ^trirf*;&nd)
rail and. bos fares. ; * c

Renter adds temtv 'Welling-
ton: ' Yestorday’s r measiaes,
which analysts said were ; the'
toughest ever totroduced by a
New Zealand ’Government ahd-
wbich stunned some members
of ; Mr Muldoon’s own party,
.were welcomed by farmers,
mamafeefazrerp 1 abd employers'-
. groups. But the ' .opposition
Labour Party end trade
unionists said toe package
would distort wages and be ixt-
effective in bpirtroffing . prices.

The freeze follows an unsoc-
cessfol attempt by- the Govern- 1
ment to negotiate a L wage con-
trol package with-the country's
trade unio ns. *nie only exemp-
tions to the . wage freeze are
a gr ee m ents •' . cnTrently 1 ' '* being
negotiated, including those _for
work on major energy prolects.

Price freeze exceptions', are
mainly for _ sefeond-band_ items,
goods, sold at auction," . some
women's clothing .and - meat

-- - - -■ — wnnn tsmuseu r H >rvmiini . . r . • »* *- ...... The G OVGHHIWBt Will • 3lSO..h€

™^i„ SlUpS 111 016 Med,ter ‘ enpjrfnas" are supported bv iSS? 64 ** B £ init 803 “ terae ^ f ” niIy . IsraeU armoor lines up on the coast road south of Beirat ; .able to raise fte prices of state-

Tancan - about 3500 Syrian troops and dive the soldier some cato. who ran a tar service from *.• • _ , ■ . run serrides. . - •

Traditionally, both the U.S. 10.500 Lebanese Leftist militia- Bank Leumi has two mobile Haifa, Eraelis northern port to 1 - . ’ * .* price increases for 'most other

and the Soviet Union Increase men with varying degrees of branches operating within Beirut before 1948 have asked Because they are residents of ' income-tax. This situation mav goods wiH be _ allowed . only In.

prisoners.

Israel's

peacetime army,

the Beirut area.

Israel Television and radio
and army radio stations all

BEIRUT— Israel has amassed rtAMlflAA T HA TTAI\I>C

a huge Military force in )C 1 Vltt/ lilt/ 11 UUU 5

Lebanon with nearly one-third ■* ■

of its tanks and most of its

standing army— far more than BY DAVID IENMON IN TEL, AVIV ,
is needed to remove the Pales-
tinian guerrillas from Beirut, ISRAELI SOLDIERS in Beirut vision,- whose signals are being

observers say. • ^ jjqw enjoying all toe bank- boosted so that it can be

They estimated that Israeli ing services normally available received clearly by the troops -
ground forces totalled nine back home. Mobile Israeli - in Lebanon. The Israel Army
armoured divisions with 90,000 banks have readied the Leba- radio station also has its signals
soldiers. In addition, Israel has nese capital, offering troops all boosted, and its morning news-
1,300 tanks, 12,000 troop and regular services, including reel programme currently in-
supply trucks. 1,300 armoured acceptance of instructions for eludes toe weather forecast for l
personnel carriers, 3,500 ambu- toe purchase and sale of securi- the Beirut area,
lances and 300 buses to carry ties on the Tel Aviv stock television and '

prisoners. market and army radio stations all

Israel’s peacetime army, Bank Leumi had* a branch have full-time correspondents
according to tile International office in Beirut before toe in Beirut where they fre-
Institute for Strategic Studies, establishment of the state of quently interview visiting
has only 135,000 infantry troops Israel in 1948, and yesterday Israeli Ministers and other
but is able to mobilize 400.000 its mobile bank was in the city politidans. They also provide
soldiers in 24 hours. Its U.S.- once again, serving its soldier a much "fuller account of the
and British-made tank force customers. Most soldiers were course of toe war than does the
numbers 3.500 with 4,000 apparently surprised at the army spokesman in Tel Aviv,
armoured vehicles. sight of the bank, although one who Is frequently embarrassed

Experts say the force is far was SOTnewhat crushed to find by radio and TV reports which

lareer than needed to overrun -toat toe mobile office ran even flatty contradict information he

the 10 Sq mile West Beirut J® 011 S ank ^? a i? lces OTt -

e^etave. where an estimated teIe P hone * 1 There has already been talk

S.nnn well-organised Palestinian Respite his being overdrawn, of rebuilding railway lines to

mterriRas" are supported bv S ® 1 1 ** B S mt ^ ? Isr !!l? f ^ nily • IsraeU armour lines up on the coast road south of Beirut ;

abnnt 1,200 Syrian troops and give the soldier some cast. who ran a tar service from *.• «

10.500 Lebanese Leftist militia- Bank Leumi has two mobile Haifa, Israelis northern port, to’ v . * ’

men with varying degrees of £*“*** operating witoto BMMmUMtam «ked Because they are residents of ’ inedme-tax. . This sitnation may'

training and expenence. Lebamm, • well as • new the Israeli authorities to allow tj-d-rs allowed free entrv soon chanee. however. Israel

S^SL-^LJSIL traders are allowed free entry soon- Change, however. Israel dtrert^etton' to to^

branches along the crossing them to restart the service,
void® <m Idtetfs northern Bnt It Is in suppling the

kLuuMo cuv auunvu mvv vuujr ovvu wmi 11 5^ uvnvvtt* liuara , . -

traderes are allowed free entry has informed the traders toat P° rt costs, changes in mreCT
into Israel to purchase their they will in future be required ^ xss ' or. other unspecified

with Christian Rightist militia- to- i into Israel to purchase their they will in future be required taxes or

da^ ^ also moved up north to offer basic foodstuffs in occupied xiberdis Sd ^S-eti? 111011011 ’ mi toe go^betog^Srte?^ to g °Mr Muldoon^ said ‘strict regu-

S2? services to their clients who are southern Lebanon that the trade ° _ . . .. i^banom exported to ^ om wouW enforce toe rent

seen a steady stream of Israeli

on the coastal road between toe

away at the war, and they too has moved most rapidly. . One Lebanese trader said that

armour and men heading north have xnt banks into Trade is already running saux relative calm had returned

lithe goods being caported to Mr Muldoon: smd strict regu-
toanon. * lations would enforce toe rent

freeze on all-. -land airf build-
Heuter ads from Tel Aviv: Ac ings. He said restrictions on

Israeli border and Beirut

into millions of shekels daily t0 Lebanon his business had .Israeli army officer set fire to lending rates 'Would be matched

Meanwhile, the' Bank of and. is being conducted by quadrupled.

The unceasing build-up has Israel is. trying to persuade traders who formerly bought He now supplies goods to 40

a pale of banknotes worth L£Im by a clamp -on deposit rates,
(£111,783) in toe southern setting - the - .maximum , . levels

prompted speculation- that Lebanese banks inside toe goods in Israel and sold them Lebanese retailers. Among the Lebanese town of Sidon to which could be paid by- banks,

Israel plans to drive the captured areas to re-open, to toe villagers laving in the most popular items are fruit ensure toe money was not savings banks, buildlng .socie"

remaining Syrian tnxros. who According to toe governor of southern enclave controlled by and vegetables, flour, oil and tooted by has troops, toe news- ties and finance companies,

numbered 30.000 in Lebanon the central bmik, Lebanese toe Israeli-backed militia of sugar, as well as beer and beet P*Pcr Yediot Aharonot reported

before toe June 6 invasion, out -bankers, are afraid that there Major Saad Haddad. One trader said that he had yestentay. T ■ r •_

and 'Beddani — located near

Tripoli in northern Lebanon.
AP

ago. before toe June 6 invasion, out - bankers . are afraid that there Major Saad Haddad. One trader said that he had yesterday. _* l -

Twc battle grnmw, Incind- of east Lebanon’s Bekaa valley will be a massive withdrawal ‘of With the new horizons created made over Si 500m in toe past It said toe officer found the Indian lTesIO£HHai ;.

ing the aircraft carriers Fnr* ®. n ? take control two Pwet funds once these branches are by toe Israeli occupation, two weeks, and he will be able money after Israeli forces i-i . rinlllo j 4

rests! and Indenon«le«ce. timan camus— Nahr al Bared re-opened. traders are spreading toeir areas to' enjoy it alL In the absence ’captured Sidon. “I" decided to ' candidate naxneo*-.

were due to sail fr»m the 'Bedi dam— located near Tbe spread of the Israeli of operation. Yesterday food of central government rule in burn it rather than expose my ZAIL SINGH, a : 66-year-old

U.S. east coast to reiilac* two. rnpoii in northern Lebanon. civilian presence in Lebanon worth Shi. 5m (£37,500) was sold Lebanon, he does not have .to meat to temptatioa” he was political veteran received the

other carrier grnnns which AP now also, includes Israel Tele- at the Melulla crossing point pay either customs duty or quoted as saying.. "' nomination of Prime Minis ter

have been on station. . 1 ' ' ■ ~ ' *• Indira Gtfndhi and* her ruling

Congress (I) Party yesterday to

A • • • A A -a become India’s seventh Presi-

to Au. iebanese and ' African countnes myestuieiit climate lmproung »

UWSW B, LARRY KUNGER IN BRUSSELS ^ ^ \

In response to the appalling and jj r S4i^l resigned from bis

tragic situation prevailing in the POTENTIAL European Inves- appearing and that the develop- working se m inar, attended by capacity. ' ments and -a Malawi-Belsan cabinet post as Mrs GancfeTs

Lebanon, caused by the Israeli tors in Africa were told in ing countries were now- actively about 40 officials from develop- The CID’s latest sectoral project for foundry expansion^. Home Affairs Minister -to

invasion which has left thousands or Brussels yesterday that condi* seeking private European part- ing countries and 30 executives campaign, follows a similar one Ten central African countries become the Government candi-

African countries 9 investment climate improving

TO ALL LEBANESE AND F

FRIENDS OF LEBANON

« _ ■ ... „ . BY LARRY KUNGER IN BRUSSELS

in response to the appalling and

tragic situation prevailing in the POTENTIAL European Inves- appearing and that the develop- working seminar, attended by capacity.
Lebanon, caused by the Israeli tors in Africa were told in ing countries were now- actively about 40 officials from develop- The «

°f tions developing coon- ners. representing an the EEC launched in February for East were represented at yesterdays date to succeed - President

h..En DnEK 11165 were becomin ^ Pereas- Investment rules were being member-states, Mr Mosgard said African metalworking indus- seminar, presenting . 45 pro- Neelaan Sanjiva-Jteddy, whose

Lebanese Embassy and the Lebanese “^.attractive for the injection liberalised, he said, and condi- CID contacts with more than 50 tries. Officials said yesterday posed projects. The (3D pfcms five-year term expired on July

community are launching a fund of pnvate foreign capiM. tions were generally being made ACP countries over the past 12 that of 31 projects presented in a third campaign on November 26.

raising campaign to alleviate the
suffering of innocent victims.

Speaking at the launch of a more attractive.

ACP countries over the past 12 that of 31 projects presented in a third campaign on November 26.
months uncovered a widespread that programme, five joint ven- 3, . aimed at the agriculture and It

has' considered ■ certain

campaign directed at the metal- The campaign is toe second desire to establish joint ven- tures are going ahead, in prin- food industries fin West Africa, that Mr Singh would be" elected
w o rking industries of west- by the CID, which is the invest- tures to expand existing small ciple and 13 projects are being Investment drives for toe Garto- in the July 12 voting" by ; all

A L-r IiAai* Acnhilrkeff rtf **~*~— & V*. nwi.’ OJ uw vtmmjma id wuv lv CA^ouu WOUU 5 M.

RrWrh Rsnl he MMAu centr ^l Africa, Mr Jens Mosgard, ment promotion body set up and medium-sized industries,
&st. Curaon Branch. London. Wl. director of the Brusselshased under the EEC’s special Lome This was regarded as

This was regarded as toe sponsorship.

considered for AGP financial bean and Pacific Ocean areas I members of parliament and

are to follow.

state legislatures ^according . to

You are urged to donate to this Centre for Industrial Develop- trade and aid arrangements cheapest and most effective way Typical of the joint ventures, The CID acts as honest a population-weighted formula,

humanitarian cause. Monies will be meat (CID), said the trend over with the 62 African, Caribbean of -creating employment Much of officials said, was a Swaziland- broker between private Euro- The. formula gives Mrs Gandhi’s

distributed by the Red Cross and recent decades for sweeping and Pacific (ACP) countries. existing industry was now work- Netherlands diversification pro- jpean investors and iACP pro- party .about two thirds of' the

other charitable Lebanese organisa- nationalisation was fast dis- In his address to the metal- ing at 40 per cent below ject for trailers and farm, imple- ject‘ sponsors, votes,

tions.

Cheques should b» mad* jmyablo to:

The Help Lebanon Fund'

e xisti ng industry was now work- Netherlands diversification pro- -pean investors and ,ACP pro- J party .about tiro, thirds of' the
ing at 40 per cent below ject for trailers and farm, imple- ject’ sponsors, 'votes.

•The Help Lebanon Fund
Account Number 12084471
All correspond enca and cheques
should be mailed to:

Embassy of Lebanon
Ref. 'HLF'

21 Kensington Palace Gardena
London W8 4QM

(Receipts will be issued upon request)
We thank you in advance far your
kindness and generosity

ANTICIPATING THE COLOUR TV REVOLUTION

Indian television manufacturers in race to brighten viewers’ lives

BYK.K. SHARMA IN NEW DELHI

WATCHING television in India predict minimum annual sales known as M black money,” un-
can be an excruciating expert- of 10,000 sets after that. - - - declared for tax purposes. of course, that foreign com- The Indian manufacturers ~ Cynical viewers of (he

ence, and one unrelieved by The _ Government’s original Competition in colour TV set panies will bag the major share are helped by the. working Government's lacklustre pro- '

colour. For the past two decades proposal was that the first colour manufacturing will be strong, of the colour TV market group's finding that the design, grammes think the exercise is

since television started, toe dull sets should be imported and sold * The Indian TV manufacturers’ because of the short time in development, ' engineering and academic. The rainbow-coloured

and indifferent Government-, with greatly-reduced import association has .urged the which the sets must become production of colour sets "is bubble "before the TV industry

controlled programmes have duties so that toe transforma- Government to allow those who available to -meet the timetable well within the capability of our could ..burst , easily after the

been watched, reluctantly, by tion of television could be rela- already manufacture colour TV to launch colour before the TV industry.” The group pointed Asian Games sinmply because

millions of viewers through poor tively painless. Following sharp monitors to make colour TV Games, out that some public sector . the " GovermnenJ-own«i tele-

quaiity black-and-white tubes in protests from the TV manufac- sets. Nearly 70 per cent of toe companies and national labors- vision network lacks irrferestlpg

TV set mamifactured by about turers’ association, this has been The Government has, the asso- black and white sets are tories have already made proto- programmes. At present, except

60 large and small manufac- reversed and the colour sets nation says, already issued by small manu facturing units types- for pro^ammes based on' toe

The fear of toe association is, close down,
f course, that foreign com- The Indian manufacturers

panies.

_ ■ Cyni cal

viewers

1931

-Multi'tone

. ■>. -■>■■■■ ■■ -■

jfqitnded:

f 3 wriechconip any . :

turers.

The. quality of the pro-

wiU now be made in India. import licences worth, about with an investment of less than Given the help of some im-. Bombay film thdiBtey's. r'peo-

The local manufacturers are Rs 80m to about 40 TV' aura- Ha lm each.

ported components — estimated have ; a

01-6486174

grammes is unlikely to improve, unlikely to be able to eope in factoring units for this purpose. if the foreign companies come iwitfoity at around LOOO per set audience. There are,

but Indian television is on the the time available, so there may if thee would be used for jn and form partnerships with —the working group thinks that ^rever, ambitious plans to

verge of a revolution. The be some possibilities for foreign making colour TV sets, toe the larger Indian ■ electronic Indian manufacturers couM ' commercialise Indian television.

Government has: after consider- collaboration. Japanese and industry could quickly maim- firms, these small units are meet the demand and sate The possibilities are ' mtmv

able delay, decided toat the German companies like Sony facture at least 60,000 sets and doomed. As It is, with the valuable foreign exchange- Tbe maus sancTmicrowave riiSSts.

country needs colour TV and . and Bosch already have meet part of the demand before announcement that Indian tele- group estimates that to manu- will be ovailable by the;end of

that it should be launched collaboration ararngements with toe Asian Games. -vision is to go colour, sales of facture all toe sets in India an the year and make possible two-

before the Asian Games been Indian electronic companies for The association claims that black and white sets have investment of - about. Rupees way ^pioture tranamssion ond

in New Delhi next November. _ a s semb ly of colour monitors for jt can meet toe rest of the dropped sharply. l^bn ^vould be required. . hence a natixml hook-up linki ng

The decision to try to remove use with video cassette recorders demand frtf another 100,000 sets A working group set up by The polity for such a long- nearly 15 major cities and towns
the drabness of TV was taken (now sold at Es 42,000 (£2,470) if the Government endorses the Government last year .term. sdieme, sketching *6 toe : With a national colour' TV

just a month ago and the indus* each, after importing com- existing licences for import of assessed the demand for colour ' 1990s would need tn be formu- .hook-np and sets to view pro-

try is jubilant The first sets are ponents in kit form. . black and white components. It TV sets at around 400,000 by lated almost- immediately. The 'grammes through, -there is^no

bound to be expensive — esti- So starved .are the compare- says most.of toe black and white 1989. The race is for the long- Indian hints fear that, because problem about toe hardware'
mated at around Rs 8,000 (about tfvely few rich Indians of enter- manufacturing units have built term markets, for which no the . Government wants the But this wfll need software three

£470) each— but even so, it is tainment that toere is a ready up the necessary infrastructure policy has yet been formulated. Asian Games to be a success or' five. "times that available at

estimated that 160,000 homes market for these sets even, at for production of colour TV if toe foreign firms get a toe- and viewed rthrough colour sets, present, end there is as yet no

will be brightened with colour the price, partly because the sets. All they need Is tbe.signal hold now, their Indian counter- it may opt for the easier too Ice, sign .of any Government moves
by November. Manufacturers funds are obtained from what is to go ahead. ' parts think they might as well of allowing in foreign com- in this direction.

' Kuals Lumpur :

IT K not often toai yoiiliear

one -partner, .of.- an altianee

: aeagtog another of nnnder-
ing bis childreir and\ grand-
tolMueffl <mly mimrtes . after ;
signing an agreement to veto
amdr figfit A together axainst ^

: -common enemy. : • .--.ri-v c j
i Bnt tbfa ^ [:■& ~i*hat Prince
Norodim Sihanouk^ the
former Kampudiean hted of

- stater said -in Kmda Tjii apnr
' yesterday after he had signed

jm «*ard with _. KMen2 Sam-
phany fte Klmieri ;Bwg«
'vleader.-:- and -toe-.nim-Gom-
nmnist 'Sottf Sann to ffftjn m
loose- jnaliflon gpteriutent
. The eoalition, formed^-after
nearly a -year ofdtaggflngover
how ; the three share ,

power, has beea :e»conniged
by. Malaysia aod otiim- Jion-
Communist Smitfi-e<at -Asiaii
nations as ammaos ot boofit-
ing opposfflon 'to ■toe - toree-
and-a-half-year'idd ocrarpation
of XCanrancluealiy yietnam.

/ :jr^€^faig - by - tod -iPrtoe^s
-tirade "" - a gainst :- the - 1 . Khmer '
Bodge, , uttered at a post-
signtng - ■ Prira* conference -
attended by ap three coali-
tion leadets^yfhe grouping.

. would appear domped- toearte
collapse. ■ ■

V But the jitoree i nmn- have

- never xtedelany bones about
their 'distaste fw eac& other,
and .the Prinre Tnade the
point repeateffly toatiheneed

...to. . resist - the ..-.Vietnamese
should and. could; override
personal and policy -differ-
ences. iV-V’-' ■ </'■ '

v. The Tdbce sjtfd of . the/
Khiner. Bodge;' who held
-power Jn^Kampnchca before.

. being, ousted: bytheVfetnain-

• ree to W79L “They are .oiMle,

I but. they are patriots. Being

* ’ patriots they wifi' choose; to

fight toe Vietnamete.": *' 7 ,

' He also : declared; w Rouge .
or nonBqnge, , w fine ’ to
unite- in order to de- Viet-
namese Cambodia; 1 * ' :

- ,i Khlett Samphan conceded
tiiat toe Khmer Rouge had

: committed “errors” daring
; its time in power;; :

The prospects of the new
coalition’s- 40,000 hrmed men
•being , able to dhdodge the
estimated 200,099 Vietnamese .
-troops -based in; Kampuchea
are poor.

One hope; te tlrat toe coaH?

- .torn will attract more inter-
. national, aid than' the : three

separate resistance groups.
But Prftiee ' Sihanouk dis-
closed that onjy China, toe
prindjnl backer, of toe.Khmer
..Renge, bad offered to increase
military assistance.

He did hot say how mnch
aid toe Chinese were pre-
pared to. provide. The five -
members^ of the Association -
of South-East Asian Nations
— T&silfflid, Malaysia, Singa-

- snore,; Indonesia and the
PhUIjfpines — have, welcomed
toe Kampuchean' coalition,
bnt shied away 'from publicly ! v
coming forward with miUtaxy

Bid.

On toe political front; toe
formation of the .coafition^is ’
seen ah a means of Increasing
leverage against the .Viet-,
namese in any possible -ijebgo-
tiated settlement of toe Kua-
pnehean issue. ■■ ■- . . •

In. particular ft Is assumed :
that toe existence' of ' toe'
'coalition will wm« thaft tbe
Kamputoean seat in toe UN r -.
which has been held by toe
-Khmer Rouge" . alone' under 1 -.
their title of. Xtemoeratfe
Kampu^iea, will, contimi& to
be denied to toe Vietnamese- ':. -
installed Govonuneht .; in-
Phnom Penh. : .- •

The Prince" said yesterday -
tteat as President of : "toe
"newly-formed coalition gov- , -

- eminent, h'e.wonld goto New ..
York in September tii repre-
sent Democratic Kampuchea
at the "UN General Assembly. ?

Khieu Sampban fe the-
coalftfonV;, vice - president,
Wito added responsibility f«ir-
foreign affairs. Son- Sann,
whose, dislike .'of'; toe Khmeri : -
Hodge was .a -major obstacle
In the formation of the coati-
ttoi. Is -Prime Minister. .

Khieu Sam phan ^ affT witod ... -
that . '.after * the.: Vietnamese
had withdrawn JEnnn Kam-
puchea^. ' the" Khmer. Rouge . ;
Would bow to the wlshfiS -oY
toe. .people in free - general:
elections that could be super- ‘
Vised by toe UN, . ;T_ '? ; 5 r
Many Kampucheans \teo
weaK-'.the honors of /toe" : .
Miner Rouge tyranny might -
be sceplical of this assorataae.; "
%ey ten be- aRSia«d, ^Iiow--
ever, , toat the; formation, of
the coalition^ is ahffksjy'- to-
redraw the

Soaih-East-Asiai ’V >- T - ’^'; r

At Chase we move money like it has never been moved befora And we speak

your language— literally.

. , '-,nr J?

i'«F
ti. rf

.1,.

if: $

.virt t

:p. j

• •*■ ■■ ■

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v ? 1

..r' 1 ‘ rf

• • *•

1 - r ->i(?‘ , vt?

y',jr

• L -

$

We have Regional Service Centres in Hong Kong, Singapore, Tokyo, London,
Bahrain, New York, and now Luxembourg. They’re manned withmulti-lingual
personnel. And they’re open during your business day.

So from now on it doesn’t matter where in the world you are.

If you need to transfer US dollars you don’t needto reach a bank in a distant
time zone. Just call your nearest Chase Regional Service Centra You’ll find you
transfer faster. Virtually error free. And the cost of communication is lower

So call Dennis Goggin in London, Tel: (01) 726 5000; Oswald Judar in
Frankfurt, Tel: 611 254 5580; or Brent Bergin in New York, Tel: 212-552 2270.

Time is money. And in the race against time, the Chase is on.

is on.

0

AMERICAN NEWS • • ::

Energy costs fuel
sharp rise in
U.S. inflation rate

BY ANATOLE KALETSKY IN WASHINGTON

INFLATION in the U.S. accel-
erated rapidly in May, return-
ing the economy to its under-
lying trend of moderate infla-
tion after a brief period when
prices were almost static.

The consumer price index
rose by 1 per cent in May, the
Bureau of Labour statistics re-
ported yesterday. This com-
pares with an increase of only
O.l per cent in the previous
three months.

The main reason for the
acceleration of inflation was an
abrupt but expected increase
in energy costs. Petrol prices,
which rose by 0.9 per cent in
■May, after falling a record 6.7
per cent in April, accounted
for three-fifths of the accelera-
tion in the overall index. Gov-
ernment statisticians said.

As petrol prices had dropped
by 15 per cent between March
last year and April this year,
there is undoubtedly more bad
news to come from this source.
The transport costs index as
a whole rose by 0.4 per cent
in May and home energy costs
increased by 1.6 per cent, after
a drop of 3.8 per cent in April.

Other big increases occurred
in mortgage costs, up by 1.7 per
cent, and food prices, which
rose by 0.8 per cent after sev-
eral months of little or no in-
crease.

Although an acceleration in
the rate of price increases had
been widely anticipated by
economists, the Reagan Admini-
stration seemed embarrased by
May's rapid increase.

Administration officials had

M ill rrwni '{ o Li nd ed ’.

u-hotlu British. '
eVned company

1955

Multitone pioneers
development of / '%
radio paging

MuJt!t(ioc Ek’crrwiicj; RLC ’ '

6-25 l •ndi-rwood Str-.v!. London N1 7-IT
Tc^'pl'orn't 01-233 "611 Tisk-x! 2665IK •

fallen into the habit of quoting
inflation figures for a single
month at an annual rate to
show the dramatic improve-
ment which had taken place.

On this basis the annual in-
flation rate in the past few
months has been, described as
running at less than 1 per cent.
But May's inflation figure com-
pounds into an annual rate of

12.7 per cent.

Mr Larry Speakes, a White
House spokesman, noted yester-
day that the rate of price in-
creases over the past 12 months
was still only 6.7 per cent, com-
pared to a 12-month rate of

11.7 per cent when the Reagan
Administration took office.

Because of the exceptional
volatility' of energy, food and
housing prices over the past
year, Ms Janet Norwood, com-
missioner for labour statistics,
yesterday pointed to an in-
flation index which excludes
these goods.

Such an index would have
increased by 7.8 per cent' over
the past 12 months, compared
to a rate of over 10 per cent in
the previous year, she told the
Congressional joint economic
committee.

Most economic forecasters ex-
pect that inflation will average
about 6 or 7 per cent in the
coming year.

0 The consumer price index in
Canada rose 1.4 per cent in May
to 260.8 (base 1971) compared
with a 0.5 per cent rise in April
and a 0.9 per cent rise In May
1 98 1. Statistics Canada said.

Costa Rica in
plea for aid

WASHINGTON.^-?- With, his
country’ near Bankruptcy, Casta:
Rican President Luis Alberto 7 ]
Monge met U.S. -President
Ronald Reagan at the White
Hquse yesterday as part/of a
thrteflay campaign to 'obtain-
new financial backing from the
U.S.

The two presidents opened
their scheduled hour-long meet-
ing by exchanging pledges of
good will.

President Monge said he
looked forward to making the
alliance between Costa Rica and
the U.S. stronger. President
„Reagan said his Administration
wanted “1o strengthen our rela-
tionship with our democratic

neighbours.” •—

AP.

Outcry at
Hinckley
verdict

By Our Washington
Correspondent

THE ACQUITTAL of John
Hinckley, Jr, the man who
shot President Reagan last
March, yesterday prompted
widespread public demands
for changes in UJ5. criminal
law.

Mr Hinckley, who admitted
shooting President Reagan
and three of his aides, was
found not guilty on the
ground of insanity.

The trial judge had in-
structed the jury that if there
was any reasonable doubt in
their minds about Mr
Hinckley’s sanity, they were
bound to acquit him.

The first Reagan Adminis-
tration official to comment oh-
the verdict yesterday was Mr '
Donald Reggri, the Treasury
Secretary, who appeared in
an early morning television
Interview. He called the
decision u outrageous ” and.
“ beyond belief ”, insisting,
however, that he was speak-
ing purely in his private
capacity.

Mr William French Smith,
the Attorney General, told a
press conference later in the-
day, that ttie time had come
to reform the insanity
defence.

** There must be an end to
the doctrine that allows so
many persons to commit
crimes of violence and then
have the door opened to them
to return to the society which
they have victimised

Some legal experts main-
tain, however, that to abolish
the insanity defence alto-
gether would be impossible
and unconstitutional.

Florida senate vote
seals fate of JERA

THE Equal Rights Amend-
• men V designed to give women
a constitutional '.guarantee.'
against discrimination be-
cause of their, sex, yesterday

38 states, three-quarters of aa/jjncT Argentina
h.. tntot m- _ggainsi Argentina.

of the total 50, by "June 30
this year. By 1977, 35 states
y fiad'ratified it •Nonefias done
so sides and five stales legis-
latures have fchanged-lhe'ir
minds." ■

Pafll Betts reports on the view of life from behind a leather-topped desk

Change of guard in U.S. executive suite

DO THE captains of U.S. indus-
try fit. the conventional “ B ”
movie stereotype of being face-
less business leaders with iced
water flowing in their veins and
computers instead of braids?
The Roper Organisation, the
New Yorktatsed marketing and
opinion research company, has
just completed a survey of 150
chief executives of major US.
companies for "Waibuig
Farisbas Becker, -the inter-
national investment bank, 'and
has come up with." some pretty
interesting answers,

Mr Burns Roper, who ran the
unconventional survey, said that
20 -per-cent of .the business
moguls interviewed did fit the
conventional public image of
the big businessman-.- — He- did*
however, suggest that the 'fact,
-that' 80 per cent of those:
approached turned out to be a ,
varied, dynamic and indivi-
dualistic lot . was extremely
encouraging. ■ •

The Roper- Organisation
approached some jof 4be biggest '
names in U-5-' industry: the
chairman of Exxon, IBM, Beard
Roebuck, Du Pont, Citicorp;'
General, Motors, among otbenfl."
Of the'. 15ft companies contacted ,
(“ 152 to..be' precise," Mr Roper
-said), about a third of the chief-
executives agreed to be inter-
viewed, a- third -appeared- tb -
have genuine" reasons Tor" not'
being able to fit in an interview
and the- remaining third either
mad& -excuses or simply ducked
out of the study. None of tihe
moguls interviewed were named
by Mr Roper because this would
have inhibited the interviews,
conducted for the survey.

So what did Sir Roper and his
team discover? Basically, the
chief executives are generally

optimistic about tihe long-term
future, far ifcore so titan the
US. people at large. Bat in
the short .term, they expressed,
considerable concern on govern-
ment deficits, inflation and
interest rates, with many
expressing the need to reduce
U^. defence spending.

-As for President Ronald
Reagan, they basically approved
the direction he had charted
fur. the country, hut. felt he
should be less dogmatic. One
executive said: “ Reagan’s ideas
are good, hot he has got to bend
a little. . I don’t think be and
bis people planned on thing s
going the way they have. And
they don’t seem to know what
to do now, I voted for Reagan,
bot-X-tbisk he has. got to be
more flexible, or else we are
going to be in worse trouble
than we are already.”

■' The chief executives had a
good deal of criticism of unions
anti union regulation bat many
bad as much or more criticism
of., management One .said:'
“ Quality is a case of attitude -
and poor quality is manage*
meat's fault, don't blame it on
the workers.” Another went , on
-to remark: “There have been
abases by organised labour, yes
. — but greater . abuses _ - by

: management" Yet another
mentioned a concept he felt was
' " soft' ’ Of "reVMtrtionary." He
said: “ I think in many cases
top management pays- itself top
much. ...”

Almost without exception, the
business leaders regard them-
selves as “■tree traders" when
it comes to foreign competition.
But many inevitably feel that
the Japanese are not playing
fair because the UR. allows
Japanes products into the UE.

; G/yn Gan in
Wall Street... sees a different
breed of mogul

without the Japane^ reciprocat-
ing.

Most feel the UB, is unlikely
to regain its former pre-
eminence in traditional world
manufacturing markets. When
it comes to foreign competition.

they say that Sh- thp riangtog
economy the country's future
strength lies in :-serviee busi-
nesses, information- - and the’ ;
export, of . the baric ctrai^
food. " . v ...... v

•• The survey, went .onto -com*
pare what chief executives think
compared -tor-wbat /fee- general •„
public /thinks -'on the : sauje -
issues. For example, ;.bf the
business leaders/: polied-.only,
14 per - ’cent - compared, .witii;'
36 per- cent of. the . public felt ..
U.S. workers * do not Work as .
hard as -foreign workers. ^: •>
On the- issue af -Jower UH :
productivity c^par^-v "wife.'
such countries as : .\fapan and
West Germany;, it . was not 'Sur-
prising to find only S per cent
of tiie moguls agreeixig that'U.S.
business management is not as
creative and efficient as foreign
managements Compared . with-
■ 23 per cent -of the public. But
fil pet cent of "the chief <xecu- ■
tives- cited - union - rules as a
major reason for toiamr -product- - .
ivity, - compared with . 45 ‘ per-
cent of the public.' " . '

They also cited less 1 modern
plants in th& UE; (53 -per cent)
and not sufficient money spent
on research and development
(41 per cent) as ‘major reasons
for lagging U.S. productivity
compared with public responses.'
of 34 per cent and 19 per cent; -.

Some, chief executives were. ,
short, oir U-S. business schools.
One illustrated '.his point by
saying: “ You know, • between '
M3t' and ' Harvard, there is a -,
supermarket and one day a guy
stood in line pushing a cart ..
containing about . 25 items op to
an express line with a sign, that
says 1 eight; items or less.* ..' As
he stood there trying to get
checked out, the clerk ; looked

at him: and/aaife- * are'ypa-frpm
Hamrd :'and catfticoahti w

framlfft and

.. ’ The stra^_^so /delve&iato

frustrations ‘ Of - ' chief j.ve^qu-
■tive& " _• Ate"®ey‘reaily, dirtied
apart? Id some rejects tbey
appear to be. "; Asked .W4^:tiMy'

. wmdd do if tfey had fbuf
bota i day
they.iikedTRpecceii
would jead,-.55.peF. t
JIKU^tiw&rWith
per -cent -
sports; but: hone wsouM eat or
watch tetevishm and only 2per
cent would >fix. things around
the; house: JJfea same question- '
naire ; revealed that Sfl pfer rtnt
of the public would -fix 'things
around the. Tjftusdl- ' : V;

What will they do when, ffiey
retire? Onersaid: ‘tl cextain^
don’t intend: to-.play - g^f ax
days. a : .week; ,, Anttthmr^id:
“I .Want- to gb- back to ttt fiob£^-~
learn how

build a computer ” athird

simply, said; ; filing

I’m going vto do Is-apaKt X lot
of; time' hugging suret'xqofiiaciiig
irgr wife.”'. ■ r.V \-,y; ; •

' This last aentimeuf reflecte a
hear; unanimous view by ’chief
. executives oo : the
success. “ I wish I couM ^eod
more; time -With my family” one
-said. • /-
'' -It does seem, ■ however; *4hat-
-the- ; UE.;. .top ' «eBctitWe -' has
suffered ’ some mlsreprtsehta^
-tipn.'- One' of those inteiyfeWed
sUggested ihat thin^s- ; ^.were
changing in fhe executive-suite.
“ In the past lO-ye^ I think:
I see a changing of the-' guard
when ‘it comes to: chief^elsecu-
tive officers. Tfaerfr: ara : ntaj or
changes of attitudes-V inr-rthis
newer generation:”"^ v^‘ "

Junta in disarray over sanctions

BY JIMMY BURNS IN BI«46s AIRES

Britain to buy rapid-firfe
anti-

ARGENTINA'S relations-, .with
the EEC have been plunged
into -unprecedented confusion

appeared 'to &e~V piece restlitiirf the pqtitirat-un-

dead legislation, reports
Reuter. A vote against the
legislation by the Florida
state senate, ..effectfvely put J
the last naQ in' ERA'S coffin. '

To become V part ‘of the
constitution, the amendment
had to be ratified by at least

certainties reigning in Buenos
Aires.

EEC diplomats here are
I- noting with- -considerable, dis-
quiet tiie wealth of contradic-
tory *.‘ official” statements that
have „ greeted the Community’s
decision -to lift its sanctions

"The situation could best be
described as a mess and T don't
think it’s going to- get better at
least until we know who is the
new president and who Is the

new economy minister and
what policies they will- take,"
said one diplomat.

The official .news agency
Telam . said on Monday that
Argentina considered the EEC
terms for the lifting of sanc-
tions “unacceptable”-

Foreign and economy mini- .
stry officials were quoted'- as
having decided to maintain
Argentina's reciprocal sanc-
tions against the Community.

However. -EEC diploma tsTsaid
yesterday that both the. Argen-
tine .Ministries of Trade and
Agriculture had privately

expressed' their interest in
resuming Argentine meat ex-
ports to the EEC as soon as
possible. -■

Sr David Lacroze, the. Argen-
tine Secretary of State for .
Agriculture, said on Monday
that he expected Argentine
trade with the EEC to resume
normally following the Brussels
decision to. lift sanctions.

The. Telam report appears to
reflect '- a - strengthened
nationalist lobby which is press-
ing for greater protection for
Argentine industry mid- a
restructuring of/ ArgehtigjL's-
trade relations. . Z~ .

.WASHINGTON : ■— Thfi r U-&
Defence . Department sald :
yesterday that a rapid fire gun,
which- US.- -navy officials Say
could have prevented the hiss,
of two British ships to Argen-
tine missiles, is to be sold to
Britain/ - ; ' ’

».The Department sent' Con-
gress a formal notification of
plans to sell Britain three
Phalanx “ close-in ‘ weapons
^sterns ” with 60.0K) rounds,
of ammunition for $48in: -
The sale follows a previous-
■ British" ^purciiase' ■••• of, 'One
Phalanx gdn for ^0.4hL/ :

• Both, orders ;were
Britain ", after the F<

conflict broke. out ,eh : April 2
with .the' Argentine^ seftnre of
the islands. -.-..V. L-. : .0_ -.-•••, ••

U.S^ Navy officios have said
the Royal Navy cciuld'&aVe des-
teoyed ’ Argentina’s : :;Frend»-
made Exocet xmssnTes, credited
wtft the sinking: of two British
shaps, “if it . ;had /iad /the
Phalanxes availaWe. • -i r

*nie PhaIant.-flriK:20mm
projectiles at the rate -of 3,000
rounds a mimrte^TLS. / experts
say' this curtaia <rf ftre/ would
be enough to' intercept and
-blow -up. any. attaddng/ Exocet
missfle. before it/can /strike
. home/ . --i-. -/•/;-/ -

CO

Ba

It's truly maintenance-free.

Built-in flame arrester for Liquid-gas separator area Built-in test hydrometer

permanent protection returns any liquid bo for easy checking

reservoir

Electrolyte reservoir to
last the life of the battery

Cold forged terminals for
added strength

This is the automotive battery
that uses a completely new
technology. Plates are wrought
lead-calcium alloy. The top is
heat-sealed on. And there’s a
lifetime supply of electrolyte
inside — so you never add
water or handle add. It’s truly
maintenance-free.

Freedom's sealed polypro-
pylene case keeps ouUflit and
. contarnaiants. The plates are
enclosed ihseparator ' .
.envelopesto.protect against ' ■
"vibratierrand impaCtdamage. ■
Wrought lead- calcium power
grids resist overcharge,
gassing, thermal runaway and
' water loss. And there’s built-in -
flame arrester protection.

With Freedom’s low self-
discharge characteristics, it has
long storage life. It even has a
built-in hydrometer for moni-
toring the state of charge. In
the vehide. Or on the shelf.

The maintenance-free Delco
Freedom Battery means car .
designers have more location
flexibility. It doesn’t have to be : "
in the front of the engine com-
partment Freedom’s light
weight means better fu ef econ-
omy and easy handiing. The '
sealed top.means no acid han-
dling by dealers. Mo contamina-

tion of electrolyte. No improper
activation. Terminals arid case
stay cleaner.'

And best of all, it’s buffi: in
Europe for the cars of Europe.

It’s the Delco Freedom . ; .
Batteiy. A remarkable new ’■
automotive power source from
Delco Remy, Diviaon of
-Genera) Motors. Milton Keynes,.
England; RusSelsheim,

W. Germany; Gennevilfiers* -
France; Milan, Italy. A wprid
leader in automotive electrical "
systecQS since 1896.-- ; —

The newbaflay factcxy In Sarreguemlnes, France, is the wodd's newest and
most modem attomotivebertts^proc^

Centered plate strap and
through-the-partifion cell
connectors for vibration
resistance

Lightweight case has
high impact strength

Coverssealedonto -
■prevent water addition or
etecttoftrtfi coniamination

WrougMIead-cakfum Separator envelopes

grid for acid resistartc^r encapsulate plates to ■' — .

r ^.ovad^gepft«d^iQa.,' .. preventshorts ; ~ “ '- r ';

r“*.andtpduqed^stog .. V -..

. v. .

m

Delco Remy

"M:

; X. - • • ;

■ Z ' 'ii. C*";’

' y •• /

V -rp

,■ -.’.try

■ •' • ■- : : : : :.v.r ;/• ' r .

Financial Times Wednesday June 23 1982 7

i

WORLD TRADE NEWS

•’tS ■

AEG abandons hope of

Soviet pipeline deal

Concern in
Italy

over U.S.

BY KEVIN DONE IN WEST BERLIN

AEG-TELEFUNKEN has given
up any hope of fulfilling its
DU 650m (£154-7m) contract to
supply 47 U.S.-designed gas
turbines to the Soviet Union
for the controversial Siberia-to-
West Europe natural gas pipe-
line.

Herr Heinz Durr, AEG chief
executive, yesterday told the
concern's annual meeting in
Berlin that the deal could no
longer go ahead with turbines
based on technology from the
TLS. General Electric company,
for which AEG has held manu-
facturing licences for more than
10 years.

The deal had finally been
ruled out by the unexpected
tightening of U.S. sanctions on
the delivery of oil and gas pro-
duction equipment to the Soviet
Union announced at the week-
end.

Herr Dilrr said the company's
turbine-making subsidiary.

ABG-Kanis, had been placed in
danger by tfce’U.S. decision.

The burden of financing the
turbines production was also
weighing heavily on the group.

The turbines contract bad
originally been taken last
autumn in order to ensure the
existence of Kanis’s works in
Essen and the jobs of its 1,200-
strong workforce.

Hitherto. U.S. sanctions, first
announced at the end of last
year, have hit only the delivery
of certain key components such
as turbine rotors. In total, 126
gas turbines were ordered by
Moscow from three West Euro-
pean groups, AEG. John Brown
of the UK and Nuovo Pignone
of Italy.

Herr Diin- made clear yester-
day that the latest U.S.
measures ruled out delivery of
completed turbines. AEG had
been hoping to get round the
earlier sanctions by buying in

the rotors from Alsthom-Atl an-
tique of France, a GE licensee
in France.

The Soviet Union would have
to build the pipeline compres-
sor stations with an alternative
technology, said Herr Durr.
Other turbine concepts would
have to be considered

He emphasised that the U.S.
measures would not stop, how-
ever, the delivery of additional
Russian natural gas to Western
Europe, a deal that all along
has been fully supported by
Bonn.

“We think it is illogical to
push through the gas deal, to
buy the gas from the Russians
up to the year 2009, but not to
be allowed to deliver the com-
pressors.”

The loss of the Russian order
would be a serious blow for
AEG which is already fighting
against the threat of financial
collapse.

embargo

By Aupnt Cornwell in Rome

TEMNKER

The June issue includes:

THE TOP 500 IN WORLD BANKING

* Commentary-the decline in bank :
profitability

Summary of results

* 'technical background- the basis ofthe list

* Top 500 banks ranked according to size of
assets

* Top 100 banks ranked by size

* Tbp 100 banks by profitability

* Tbp 50 banks by performance

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(824100

Norway cannot
meet

gas demands

Norway told the U.S. yester-
day that there was no way it
could raise its North Sea gas
deliveries to West Europe in
the 1980s as an alternative to
supplies through the contro-
versial Soviet Siberian pro-
ject, Renter reports from
Oslo.

Mr Vidktmn Hveding, the
Energy Minister told Mr
Richard Perle, U8. Deputy
Commerce Minister that a
hook in Norwegian supplies
in this decade was out of the
question, a Ministry spokes-
man said.

The U.S. official saw the
minister to explain U.S.
opposition to the Siberian
project Last Friday Presi-
dent Reagan expanded U.S.
sanctions against the scheme
and- Mr Perle said that
would-be Soviet customers
like West Germany might be
able to buy from Norway
instead.

THE derision by U.S. Presi-
dent Ronald Reagan to extend
the embargo on deliveries of
high technology to the Soviet
Union has aroused deep con-
cern in Rome over the impli-
cations for Italy’s involvement
in the Siberian gas pipeline
project

The company most directly
affected is Nuovo Pignone, a
subsidiary of the ENI state-
controlled energy * group,
which last year won a contract
worth .up to $lbn, to supply
19 of the 41 compressor
stations on the pipeline.

Although the bulk of the
equipment Is Italian, Nnovn
.Pignone was planning to:
employ rotors built under
licence from the U.S. General
Electric Company, and thus
falling under the provisions
of the new,' tighter, regular
tioos.

So far, the g o v e r nm ent in
Rome has given no fo rmal
reaction to the move by
Washington. But it win be a
major subject for discussion
in the talks this week with
Mr Vasil Dinkov, the Soviet
Gas Minister, and has further
complicated the overall ques-
tion of Italy’s natural gas
imports for the rest of tills
decade.

SNAM, the gas subsidiary
of ENI has long since reached
outline agreement . with
Soyuzgasexport, the Soviet
agency, to import up to 8bn
cu m of gas from 1985, as
part of plans to raise Italy’s "
gas imports by 15bn cu m
annually ' by 1990. But
political considerations have
so far prevented final ratifi-
cation of the arrangement.'

Further delays in the Soviet
scheme may well increase
pressure for a speedy conclu-
sion to negotiations between
Rome and Algiers for gas
via the trans-Mediterranean
pipeline, deadlocked only on
the Issue of price.

9b* Beleacem Nab!, the
Algerian Energy Minister, is
due in Italy today for further
discussions with Italian
Ministers.

UK owners want to

ANDREW FISHER IN LONDON AND FAY GJE5IER IN OSLO

European petrochemical
overcapacity studied

IN THE busy Norwegian sector
of the North Sea, a lone UK
supply vessel — the Seaforth
Saga, on charter to BP Norway
—is at work. In the busier
British sector, there are as
many as 47 Norwegian ships.
Why the huge (flscrepancy?

ft is a question which UK
supply vessel owners, trade
unions,, and the government
would dearly like to have
answered. But the industry is a
bud one to pin down and
answers are elusive.

When Mr Iain Sproat the
UK Shipping Minister, went to
Oslo last- week, he was clearly
determined to ' prise some
explanations from Mr Arne
Skange, his Norwegian opposite
number. Was there actual pro-
tectionism, and if not, why was
there in Mr Sproatis words such
a “ grotesque imbalance?”

With Norway building fax
more supply vessels - than
British companies, or anyone
else for that matter, there is
also a fear that its position in
the UK sector could grow even
more powerful in coming years.

Supply vessels are the work-
horses of the North Sea and
do not just ferry supplies to
rigs and platforms. Varying in
size and costing between £2m
and £7m to build, they also
move and position the anchors
of rigs in the ocean.

At the moment, the market
for such vessels is booming. On
the spot market, daily rates can
be up to- £6,000 for a big
7-8,000 horsepower anchor
handling supply boat' If the
boat is chartered for a year or
more, this comes down to
around £4,000. For smaller
ships, the daily spot rate is
£3,000 or more, with roughly
£2,000 for a longer-term hire.

Seaforth Maritime benefited
from its marketing link with
Norway’s Stad Shipping in

placing its vessel with BP
Norway. Similarly, Stad has
three vessels off the UK.

But Seaforth’s vessel will
soon move down to the French
offshore area to work for Elf
Aquitaine. So after July, there
could be ho British supply
vessels off Norway at alL

Of the 60 supply vessels in.
Norwegian waters, 57 _ are
Norwegian, with the British,
Danish and West Germans
having one each. Off the UK,
there are 162T . vessels— 71
British, 47 Norwegian, 15
Dutch, 10 West German, 11 U.S.
and a sprinkling of others.

In Norway, when ofl com-
panies are invited to bid for
new exploration licences on the
continental shelf, they axe re-
minded that, one factor the oil
ministry will consider is . “ the
extent to which (applicants)
have in the past made use of
Norwegian goods and services.”

When new licences are
awarded, the ministry tells the
company concerned it will be
expected to use Norwegian
goods and. services . “ where
these are competitive on price,
quality and delivery dates.”

These phrases express a
generally held Norwegian belief
that the country’s offshore
industry should provide spin-off
benefits to. the rest of the
economy. They could explain
why so many oil companies hire
Norwegian supply ships.

Mr Ska age .assured Mr
Sproat in Oslo that there were
no protectionist barriers stop-
ping UK vessels from working
in Norway’s sector. The word-
ing of the joint statement
emphasised both countries* aim
of keeping their sectors open to
all flags.

Needless to say, several UK
supply vessel owners, not to
mention the National Union of
Seamen — over 1,500 UK sea-
farers work on suply boats—

SUPPLY Y55BS IN NORTH SEA

FT»e

UK

.Norway

Netherlands

Denmark

W. Germany

Panama

US.

Odierr

Total

UK.

71

47

IS

10
. 4

11
5

163

■ • ■ Sector .

Norway, ^f to t hert enda Dennwdc W. Owntny

i 2 • "i ;

ST - 2.1 _

’ -11 •• —

. % ' \ • *.y • •

! -f. >

60

7

76

Sounm Siawirt Pffj&cya Strvhas {posMon iriimf^

were less -than happy .with the
apparent outcome of . Mr
Sproafg visit and wiD be •press-
ing him for more, details. , ' /
No-one in Norway’s oftabote
industry is prepared, to say. ;
whether UK vessels are more '
competitive than Norwegian
ones. Certainly, . Norway's, ship-
ping industry has a high reputa-
tion, while language could, be'
another factor; all -Norwegian
masters ■ kwU officers speak
English,' . ibtct few \ BntzsSi
skippers know Norwegian. -
There are over .70 supply
vessels being -bruit for Nor-
wegian companies against only"
29 for British* Tb a great:
extent, tills' is the result otf a .
tax loophole — Norwegian lews
encourage formation of ad toe-
tax shelter partnerships known
as kommandiRsdskaper ' -for.'
investment in almost anything. --
Wealthy Norwegians make
much use-' of this device.;- to
escape swingeing income ’taxes.
But on the offshore side; warn-
ings, of a looming supply ship
glut have had .their effect New
partnerships of this kind have'
been turning to other types of
investment' like aircraft leasing
and cruise vessels.-.

Established Norwegian- ship-
ping companies', unlike the kom~
mantirttselskaper seldom order
supply stops on spec. They r

normally secure- longterm
charters ii. advance. Companies
like WiSh Wtihetaosen are earn-
i ng go od, profits on offshore
activities. * -/• -

• ,UK owners -• riant '• ttat
Norwegian rates have under-
cut those of their own vessels,
oven though operating costs are
much the same/But there are
no rieancut examples. ,UK man-
ning requirements canjito give
-the Norwegians ah' edge* it is
; claimed^ _abce''T8ritish . ships
■need to bave a tow more men
,'oa ; boards ■: 7 ‘ M ' L : . .

Even ..UA-flag -ships - have
been moving bad? Into flier UK
sector as -conditions m jhe Gulf
of Meaaoo have worsened. Bht
this is 'not eutoctril-tb to a
tong-term -probteh. ; - \ -j^ . - ^ .

BaskaKy^ xabst ■ UK ^ owners
are- jrked, that aheir access to
Norway is blocked, ; if not by
overt protectiOnisan, -teen. '-fey ;
what seems a more soMto dis-
criminiUoiry j«rocess* :\ :;-;' :

Norwegian entrepreneurship
may provide part ottto’aitewer,
since no-one is - claiming . that
Norway’s stoply operations are
of Iras than; top. standard. But
until- tiie imbalaiice jsiafleaat
partly righted, tbe .disoontent
win totitmae to': stomer in
Britain as it has ior . several
years, v r~' - = -

Oil states to abolish customs

BAHRAIN — Six oil-producing
states grouped in the Gulf co-
operation Council have decided
to abolish customs tariffs on
domestic .products .and to apply
freer transit and travel regula-
tions from December 1, the
official Saudi Press. Agency has
announced.

- Finance and "Economy Minis-
ters from Saudi Arabia, Kuwait,
Bahrain, Oman, Qatar and the
United Arab Emirates (UAE),
who ended a two-day meeting in
the Saudi capital of Riyadh, also

agreed on measures giving their
citizens freedom of economic
activity in agricultural, indus-
trial, contracting and trade
sectors. .

Quoting a council nffiriat the
agency said that in suto ven-
tures the state will have the
right to fix a 25 per cent equity
participation for its nationals.

Under the travel measures,
the usual vehicle documents
•would suffice for passenger cars
or goods trucks being used in
the six member states.

The ministers also agreed on
a sub-committee of customs
officials to consider a Unified
tariff for foreign products. •

The "decisions -were : made
under an earlier framework’
economic pact; which aims .to
achieve economic integration
among the six. . -. .

It. was not dear which nat-
ional products . would be exempt
from customs dues, which vary
from state to_ state. Apart from
oil and products, locally mann-.
factored goods are not exten-

sive. : The six are heavy: hn-
-poriera af.eoiisQmre tod fndus-
. triad goods. •< ~ :

-The arahtiit was fihxned m
May 1981 in response -to politi-
cal upheavals lit Iran and
Af^nistan. . It i3. alto active
in boosting secu rit y and:defence
capaMlities bf-"the -.ludnber
states, who betweo- them pro-
duce about a quarter of the
non-comzmmist worid’s <ril. out-
pot • y\ ■

Reuter

BY SUE CAMERON, CHEMICALS CORRESPONDENT

THE European Commission has
been studying the problem of
overcapacity in • Western
Europe’s loss-making petro-
chemicals industry — and it
could decide to intervene in
companies'
plans.

Officials in Brussels have begun
preparing a paper detailing
tile amount of overcapacity in
plastics and petrochemicals.
When it has been completed,
commissioners — including
those for industry and com-
petition— are expected to hold

will involve compaines doing
deals similar to that an-
nounced last week by BP
Chemicals and. .imperial
Chemical Industries in ihe
UK.

rationalisation Such deals could run into legal
difficulties — particularly if
more than two companies
were Involved.

The European Council ofJCheml-
cal Manufacturers’ Federa-
tions CCefic) has now made it
clear it will not play a lead-
ing role in any restructuring
of the industry.

taiks wito leading figures in But M. Jacques- Solvay, head m

Many offshore fields said to be

BY RAY DAFTER, ENERGY EDITOR, IN VB41CE

the petrochemical industry.

Observers do not believe the
Commission will produce a
master plan for closing down
surplus capacity in plastics
and petroch cm rials. But a
restructuring of the industry

the Belgian-based Solvay and
outgoing president of Cefic,
has had private talks with
Vicomte Davigntm, EEC
Industry Commissioner, on
nationalising petrochemicals
end plastics production.

TliisanrujUDcement appears as amajiBrofiEC^rdon^

THfCOMUNICAgOES DE SAO PAULO SA-TEESP

EWPRESADO SISIEMAMEBRAS

U.S. §42,780,000

Medium Term Financing

Guaranteed by

Telecomunicagoes Brasileiras S A-TELEBRAS

Chemical Bank
International Group

Banco AuxiliarSA

Banco Hispano Americano
Paris Branch

Banco Noroeste S A

Banco RealS A

. BankAmerica-Intemational
Group

NorcSc American Banking
Corporation

UNIBANCO-Uniao de Bancos
Brasileiras SA
NewYoikAgency

Ageri

Chemical Bank

Juh0 r 1982

MORE than 800 offshore ofl and
gas fields, are being left
unexploited because of economic
or political uncertainties, accord-
ing to Mr Peter Gaffney, an
international energy consultant.

About one third of these dis-
coveries were off the shores of
lesser developed countries winch
badly needed fresh energy sup-
plies. said Mr Gaffney, senior
partner in Gaffney. Cline and
Associates. He - was speaking in'
Venice at the Economics of
Natural Gas Development Con-
ference sponsored by the Finan-
cial Times _ and consultants,
Gensen Associates.

The development of new
fields— particularly gas . dis-
coveries was being frustrated by
the oH industry’s uncertainties
about pricing and securing a
reasonable rate of return.

Dr Wijarso, director general of
oil and gas in the Department
of Mines and Energy. Contraots
had been signed which would
double the signs of the country’s
liquefaction facilities— now 8.6m
tonnes year— by 1985. Most of
the additional liquefied natural
gas (LNG) would be exported
to Japan, the -buyer of Indon-
esia’s existing LNG exports.

But this would not be the end
of the story, said Dr Wijarso.
Additional gas reserves were
now being confirmed through
drilling programmes. Only 12
of the 40 geological areas
thought to contain gas were,
now being exploited. Ten areas
had been slightly explored and '
18 remained virtually un-
touched.

A team 'from the World
Bank spoke . of the new

Mr Margin Iffn pnrip f, . man-
ager of economics . and plan-
ning for BedrteL Petroleum’s
pipeline facilities division, out-
lined the economic considera-
tions for major industrial pro-
cesses using natural gas. as a .
source of. energy and ; raw
materiaL. .

FINANCIAL TIMES

Natural Gas

Development

; . .Giving Ufi. cost and prking
trends' Mr Muenzler, - showed-
that only ..-plans produemg
methanol aluminium chlorine
and alkali could be considered
profitable in contrast to plan?
making, sponge iron, ammonia,
and cement. • - - • ■ •

CONFERENCE

Plans for developing a ' gas
distribution system: in Portu-

gal were detailed by BEt Daniel
Bnrq, -deputy general manager
of -Sofrega? of France. Under
there plans* now. being studied
by the Portuguese Government,
up fo jL5bn cu m per year of
gas : wwild be supplied to the
Western area : liy-the year 2000.

Companies preferred large pro- approach needed^ for gas pro-

jects to. “ small, sensible
schemes. Gas development was
at a cross roads, said Mr Gaffney.
Existing projects already on
stream could command a price
based on “ what the market will
bear.” In some cases, there had
been “ exotic profit-taking ” by
producers tantamount to “the
rape of consumers."

International Gas prices bad
risen to a level 100 times above
rates less than 25 years ago. By
comparison, oil was “only” 15
to 17 times more expensive in
money of the day terms.

But there was now a surplus
of gas with the potential of
major new export supplies par-
ticularly from the' Middle East
“We are gambling in a weak
market” said Mr Gaffney. New
sdhetnes would have to be con-
sidered on the basis of a pro-
ducers’ ability to finance the
project rather than by the
alure of high ‘prices.

jects in developing countries.
M Philippe Boursier, assistant
director in the Energy Depart-
ment said gas was a unique
fuel requiring a continuous
link between producers, the
transportation and distribution
system and customers. The
World Bank he said was in an
ideal position to act as a co-
ordinator in the formulation of
gas ps$]ects in developing
countries.

It was important to view
many of the un exploited off-
shore fields not as a source of
potential exports, but ' as a
supply of fuel and industrial
raw material for individual
producing countries.

M Pierre Moulin, petroleum
engineer in the bank’s energy
department, said there was a
need to adapt modern techno-
logies for the particular needs
of developing, countries. New
technology needed to take

- . . . account of the need to exploit

One Middle Eastern county small fields on cost and Sag
11*1 an m on «<= «v«nrf assumption ^

different from those normally
viewed in Western countries.

Dr Dearme Julius, senior
.economist in the bank’s econo-
mic advisory department also
spoke of the need to took at the
gas pricing requirements of
developing countries rather
than to rely on the “accepted
wisdom of experience gained

with an eye on gas export
potential is Egypt. Dr Mostafa
el Ayouty, deputy oh airman for
exploration and. production in
the Egyptian General Petro-
leum Corporation, said that the
oil industry was being en-
couraged to step up its
exploration and development
programme by a new set of gas
exploitation rules. Companies

have been told that they would in industrialised countries. Gas
be able to. export liquefied pricing policies of the major
natural gas once national industrialised nation? were
reserves had guaranteed the more a function of their own
supply of 845 bn cu m. This historical structures than of tie
reserve was deemed necessary underlying economics of gas in
to cover Egypt's internal gas today’s energy picture,
needs until the year 2000. Mr. Keith Peimar. a petro-

As a result of incentives, lernn contract specialist in the
Egypt’s gas reserves tad grown bank’s energy department said
by at least 25 per cent to that gas exploration In develnp-
a round 140bn cu m over the ing countries was being held
past couple of years. Such back because of the lack of ex-

reserves estimates were .very
conservative he said, “ Such a
figure will certainly change
once- the’ present oil .and gas
find s are properly valuated in
terms of reserves.”

Indonesia, one of the world’s
leading gas exporters, is also
pl anning to build up its inter-
national trade, as outlined by

pludt contractual and fiscal
frameworks. ‘

Potential investors were- un-
able to form a judgment about
the value of possible gas finds.
As a Tesult, gas prone areas
tended to be under -exploited.
Contracts should establish the
principle that gas would be.-
treated in the same way -as- oil

j-uusl ^ ysoisui uik uasL wm, fcuiKi Aeepmgme peace in i\enya, alter
seerng through the evacuation of Aden,- nikinsa tbur-in Northern
fcdand Sergeant J'n'k’n was hiton ihehead. Withatoine. '
He lost his reason.

* wfiui uaovu auiuo jug wco ujvauCHSu. UUU1&* r ■-

Sometimes in hospital, sometimes ih our Convalescent Home — » •
wherever he Js, we look after hinu.Orfe day. hell pibtoWy ehfer - -
our Veterans’ Home for good, stiDlhmktng that the next man in die
street isabouito attack him. - : ... ;

Ev ery year brings in more and more deserving cases Iflto- ; " v *.
Sergeant ti'n’k'ru For those who-are homeless and cannot
after themselves indie co mm unity, weprovide n wi o a ij a ti i ;' . -'

acco mmo dat io n in ourHotieL •

And every yearour costs go up. V ‘ ;

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everything we can, but In the end it ditoends upon what uq atari '.
afford to give.

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Financial Times Wednesday June 23 1982

Minister clears
Reed takeover
of local papers

BY ALAN PIKE, INDUSTRIAL CORRESPONDENT

A MAJOR expansion in the pro-
wiciai newspaper interests of
Reed International, owners of
the Mirror Group newspapers,
has teen approved by the
Monopolies and Mergers Com-
mission.

Following publication of the
commission’s report yesterday.
Dr Gerard Vaughan, Minister
for Consumer Affairs, gave con-
sent for two separate transfers
of ownership to Reed — involv-
ing the eight newspapers
owned by Berth am Newspapers
and the 11 of St Regis Inter-
national.

Two members of the commis-
sion signed a note of dissent,
stating that the St Regis
transfer may be expected to
operate against the public
interest

Newspaper takeovers must
usually be referred to the com-
mission. Last year, following
another investigation, Reed was
given permission to buy the
Berrow’s newspaper group from
News International, subject to
it selling West of England
Newspapers, which it has done.

The commission said in yes-
terday's report that on the basis
of 1979 circulation figures, the
Berrow’s, Benham and St Regis
takeovers will make Reed the
second-largest owner in Britain
of local weekly newspapers.
They will increase the market
share of the top five under-
takings from 22.1 per cent to
23.5 per cent

Benham owns one evening
newspaper, six weeklies and
one free distribution news-

paper, all circulating In Essex,
Reed has an association with
the company through joint
ownership of Q£, a .printing
works at Colchester.

St Regis, part of the St Regis
Paper Company of New York,
owns one evening newspaper,
seven weeklies and three free
distribution newspapers. These
circulate in North - West
England, South Yorkshire and
Teesside.

Reed told the commission
that it would not seek to make
further purchases of local, paid-
for newspapers If the Benham
and St Regis transfers were
allowed, “at least until it had
demonstrated to its own satis-
faction that these investments
could produce an adequate
return."

The two dissenting members -
of the commission were Mr
Bernard Owens, former chair-
man of Unochrome Industries,
and Mr David Churchill, Con-
sumer Affairs Correspondent of:
the Financial Times.

The majority on the com-
mission said it did not believe
there was potential detriment to
the public interest in the St-
Regis transfer, “ given that it is
the acquirer’s policy to adopt a
decentralised structure and to
give editors a full measure of
independence.”

This argument was rejected
in the note of dissent. “Policies,
and personnel change over time
and we consider it unwise to
find on this ground alone that
Reed is more acceptable than:
others,” it said.

Recession continues to
hurt printing industry

BY OUR INDUSTRIAL CORRESPONDENT

THE printing industry con-
tinued. to be affected by a low
level of economic activity
throughout last year, the
British Printing Industries Fed-
eration says in its annual
review.

Re-adjustment in the value of
sterling in relation to other
currencies, reflected a more
realistic position, hut the world-
-Widfr. economic . recession en-
sured that this change failed to
free the British printing indus-
try from international competi-
tion.. ...

Although book printers man-
aged to overcome some of the
competition from North
America, they continued to be
hit by the severity of the reces-

sion.

“Advertising, which had'
earlier remained buoyant, suf-
fered a rapid decline, with
marked effects on magazine and
periodical printers, says the re-
view.

“Closures, redundancies and
company reorganisations in all
parts of the industry reflected
the widespread ill effects of con- ■
titniing recession.” - . ..

The review says that the
abolition of time-served appren-
ticeships, which the- federation
and the National Graphical
Association hope to introduce
next year, will have a “profound
effect” on requirements for the
provision of printing education
and training in colleges.

Cargo owner fails in plea
over arbitration ruling

BY RAYMOND HUGHES, LAW COURTS CORRESPONDENT

INORDINATE and inexcusable
delay in taking to arbitration a
dispute which arose in 1972 over
the late delivery of a cargo of
* com had made a fair trial im-
possible, the Court of Appeal
ruled yesterday.

Some of the relevant docu-
ments had been destroyed and
the recollections of witnesses
could not be relied on so long
after the event, the court held.

An appeal by the cargo owner,
Koninklijke Bunge, against a
Commercial Court injunction in
- October, 1980, stopping it pro-
. - ceeding with the arbitration,
...was dismissed.

; . For the second time in recent
months, the Appeal Court side-
. stepped the House of Lords'
r uling in Bremer Vulkan that
the courts had no power to halt
an arbitration because the
^claimant had not proceeded
' with it, there being a mutual
-obligation on both parties to
.get the arbitration moving.

As in the Hannah Blumenthal
esse in March, the appeal
r judges yesterday ‘held that an
arbitration agreement had been
frustrated because delay made
a fair trial Impossible.

“ Despite a plea by counsel for
■ Koninklijke. who said that many
other cases, involving an
incalculable amount of money,
were affected by the frustration

Multitone wins
Queen’s Award
for exporting

iuhaorv K.'crror*!, RU".

-2S NI 7JT.

0I-2.73 7tH TWi-v 26rw!S ,

iV : i w/*

ruling, the court refused leave
to appeal to the House of Lords.

Lord Denning said that in
1972 a cargo of com was shipped
from New Orleans to Rotterdam
on the Argonaut owned by
Neptnne Maritime Co* of
Monrovia.

Due to engine problems, the
vessed arrived at Europort on
October 4, 1972, instead of
September 30. As a result, the
cargo owner had to pay addi-
tional import duty, imposed by
the Dutch authorities from the
beginning of October to en-
courage summer imports of corn.

' Koninklijke claimed reim-
bursement of the 140,799 Dutch-
florins (£29,941) extra duty,
contending that the delay was
doe to the Argonaut's unsea-
worthiness.

The cargo owner appointed its
arbitrator bnt did nothing more
to get 'the arbitration started
until September, 1978, when it
revived its claim and gave
Neptune 14 days to appoint its
arbitrator, in default of which
Koninklijke said it would go
ahead with its own appointee as
single arbitrator.

Neptnne appointed ah'
arbitrator under protest, pre-
serving Its rights as regarded
the delay. But 14 months, later
the aribtration had been taken
no further.

The delay amounted to eight-
and-a-half years, said Lord
Denning. He said the Bremer
Vulkan decision, which had
caused everybody “an infinity
of trouble," did not stop the
court ruling that the contract
had been frustrated by that
delay.

Councils urged
to contract out
public services

LOCAL authorities mast con-
sider contracting out more,
public services to private enter-
prise, a junior minister said
yesterday.

Loati Befiwin, Environment
Under-Secretary, said private
contractors would give better
value for money. “ Value for
! money is, at the end of the day,
what the argument is all about"
he told the Institute of Wastes
Management . conference at
Scarbordugh-

He said that complete
privatisation of local govern-
ment services was not realistic. „
nor even desirable.

Move to
strengthen
Monopolies
Commission

By Our Consumer Affairs '

-Correspondent "

THE MONOPOLIES and
Mergers Commission is being
strengthened for the extra work-
load it has undertaken as part
of the programme of “ efficiency
.audits” of nationalised indus-
tries.

• Dr Gerard Vaughan, Minister
for Consumer Affaire, has made
an Order enabling the comnris-
sion’s membership to be in-
creased from 27 to 32,

The commission bas a full-
time chairman. Sir Godfrey lie
Quesnc, and three part-time
chairmen, Mr Jeremy Hardie,
Mr John E cries, and Sir Alan
Neale. There are 21 part-time
members of the commission.

Its workload was significantly
increased at the New Year by
.the government announcement
of seven investigations this i
year into the efficiency and costs j
of nationalised industries. i

These investigations, Inriud- !
ing one into the National Coal
Board, have proved very time-
consuming.

The commission has additional
investigations being carried oui |
under the 1973 Fair Trading
Act and the 1980 Competition !
Act.

UK NEWS
World jobless increasing

BY MAX WILKINSON. ECONOMICS CORRESPONDENT

THE proportion of fihe UK
labour force which is un-
employed remains one of the
highest In the world,
although nnemployment Is in-
creasing at a faster rate in
most major countries.

The seasonally adjusted
total of unemployed In the
UK for June, released yester-
day was 2.911m. This is
per cent of the workforce.
The unadjusted figure, in-
cluding school leavers was
3L0Glm, or 12.8 per cent of
the workforce.

In May, when the adjusted
total in the UK represented
12 per cent of the workforce,
the comparable figures for
other countries were: France
Z0.6 per cent. West Germany
7.7 per cent, the UJ5. 9J per
cent and Japan 2.3 per cent.

How ever, the UK’s rate of
Increase of nnemployment in
the three months to May com-

pared. with the previous
three months was only L7
per cent. Of the five major
countries only Japan bad a
slower rate of increase for
the period at 1.1 per cent.
The comparable rates for the
other countries were: France
£2 per cent. West Germany
9J2 per cent and the UA 8
per cent.

These comparisons do not
take account of the June
figure, which seems to show
some acceleration of the un-
employment trend in the UK.
After seasonal adjustment
and allowance for distortions,
the underlying rale of in-
crease of adult nnemploy-
ment in the UK in the second
quarter of this year Is esti-
mated to have been an
average of 30,000 a month.
This compares with an aver-
age of 21,000 per month In
the first quarter.

Borstal criticised as expensive and ineffective

BY USA WOOD

THE average weekly cost of
keeping young offenders in
closed Borstals was £174 in
1981 compared with £141 the
previous year, according to the
National Association for the
Care and Resettlement of
Offenders (Nacro).

The cost of prisoners in open
Borstals was £200 a week, and
the average daily population of

both institutions was 5,481
young* people.

Nacro, in calling for an
amendment to the Cr imina l
Justice Bill which began its
committee stages in the House
of Lords yesterday, said
custodial sentences were not
only expensive but often in-
effective.

High and increasing recon-

viction rates showed that they
did not provide an effective
answer to teenage crime, said
Ms Vivien Stern, director of
Nacro.

“Over the last five years,”
she said, “ the reconviction
rates for young adults leaving
prison have risen from 64 per
cent to 68 per cent, for those
leaving Borstal from 63 to 69
per cent and, most striking of

all, for those leaving detention
centres from 54 to 68 per cent
— a massive 14 per cent jump in
just five years. These are the
overall reconviction rates for
offenders under 21.

“ The figures for those under
17 are even higher: 76 per cent
of the juveniles leaving deten-
tion centres and 83 per cent of
those leaving Borstals are re-
convicted within two years.”

Delay likely
over sale of
International
Aeradio

By Raymond Snoddy
THE SALE of International
Aeradio OAL). the British Air-
ways subsidiary, is likely to be
delayed for several weeks. .

The delay stems from the dis-
covery that the articles of asso-
ciation. state categorically that
in the event of a sale the
majority shareholder should
give first refusal to the com-
pany’s " B " shareholders.

BA holds 98 per cent of the
shares of LAL. However, the
other 2 per cent is held by BA
competitors — 30 international
airlines including Pan Ameri-
can, Qantas, Middle East Air-
lines and British Caledonian.

IAL believes that the diffi-
culty will cause only a hiccup
■in the sale. It is thought un-
likely that any of the airlines
holding shares would be
interested in purchasing the
company, which is- involved in
air-traffic control, airport and
hospital management, telecom-
munications and electronics.

In a month’s time, IAL will
announce profits of £10m for
1981, compared with £6.6m in
1980. Group sales have risen
by 30 per cent.

Another problem, confirmed
by the Government in the
House of Commons on Monday,
is the generous IAL pepsion
fund. Any prospective buyer
would have U> protect the staff's
pensions.

People who rent

Weoften

” 7 ri to the

Provided you’re within five O miles or so ofan Avis office, we could
save you the trouble of awasted journey

Instead ofyou coming to us, we will happily come to you. All you do is
pickup the phone and leave the rest to us (the London number is 01-245 9862).
Most of the time, the service won’t cost you a penny extra.

And we make sureyourAvis car haspassedan exhaustive 43point check
before you’re allowed behind the wheel.

But in the unlikely event ofyou fi| ever needing it, we have a 24 hour
emergency service you can call on. -

AVhen it comes to looking ' •

after you, no other car rental
company goes out of its way as
much as Avis.

AVIS

We tiy harder

HnpiffK, ... ac

j.

Financial Times Wediiesday. J.Jme -23 19 S 2

CHNOLOGY

BY ALAN CANE

research opportunity at $40,000 Twenty

BY GEOFFREY CHARLISH

ONE OF America's leading
edge research organisations,
SRI Jmernational of Menlo
Park. California, is to open up
it 5 industrial automation pro-
gramme to companies outside
the- U.S.

■ This o.OUH strong non-profit-
making institute, with its roots
in Stanford University, has
research and consulting
revenues exceeding Slotim
derived from over 2.500 pro-
jects involving over 50
countries.

There are already some 30
contributing U.S. participants
r 3ioliai.es) in the SRI auto-
mation program, the list inr
eluding such names as Boeing,
Cincinnati Milacron. Kodak.
GE (USA i. General Motors.
IBM. Proctor and Gamble and
Xerox. The programme has
been funded for some years by
the U.S. Government and cur-
rently is receiving $460,000
over ' two years from the
National Science Foundation.

The U.S. affiliates pay $30-000
over two years and now non-
U.S. companies can take part
at 840.000 over two years, the
higher figure taking account of
the fact that they do not pay
U.S. Taxes.

In London last • week. SRJ's
robotic* department director Dr
David Nitzan took the view that
born European industry' and the
SRI programme would benefit
from wider participation. He
said: " We have to keep the
research level beyond the
critical mass " — a reflection of
tiie expense and complexity of
modern automation research.

Documentation

Affiliates will be able lo-pro-
po-e automation problems,
influencing the direction of the
F. D. They will directly bene-
fit from i h roc-day meetings, all
the documentation arising from
work ar Menlo Park, three man-
days .if private consultancy and
all the software developed by
the programme. Affiliates’ use
of tiie software carries a

royalty to SRT of two per cent
of the selling price should a
commercial product be
developed.

The SRI move, although it
may not be particularly good
news for European research
organisations, is clearly signifi-
cant in terms of technology
transfer from the U.S., where
practical experience is often
some years ahead of that in
Europe.

At the same moment. £?RI has
instituted two new programmes,
one covering sensor guided
robot arc welding, the other
automated circuit board
inspection (not testing).

Robotics

The significance of the first
is borne out by the fact that
U.S. Army and Navy support
amounts to Sim annually while
the NSF is funding the second
with 5450,000 over three years.
Non-U.S. affiliates fees are
respectively 540,000/two years
and 560,000/three years.

In terms of robotics, Nitzan
made it clear that SRI was not
really in the business of “arms
that pick things up and put
them down again.” •

The overall object be empha-
jses, is “programmable indus-
trial automation” — with or
without arms. It will have three
salient features; trainability —
the ease with which factory'
staff can program it; flexibility
— its ability to perform a
variety of tasks; and intelli-
gence — its ability to perceive
unforeseen conditions and act
accordingly.

It is the absence of the latter
in most systems developed so
far claims Nitzan. that makes
them quite unable to replace
humans in any general way.

The team at Menlo Park is
already well into advanced
robot programming languages,
path control of manipulators
and vision techniques using
both grey scale and binary
l black/white) images from

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How SRI is modelling programmable assembly. The- assembly sequence will be embraced
during computer aided design of the product to be manufactured. There, the designer will be
able to visualise the Individual product parts in the usual way and at the same time optimise
the way they attach to each other. A computer program will transform the sequences into
assembly operations from engineering analyses fed into it. Finally, a code generator produces
machine instructions for assembly execution

TOGETHER WITH 19 other
companies, including Ethernet
proponents Xerox; Intel and
DEC, Britain's ICL has openly
declared support for Euro-
pean Computer Manufacturers
Association (-ECMA) stan-
dards for open system local
area networks ratified by the
Association two weeks ago.

Basic meaning for the user,
is that equipment offered by
the companies will be freely
connectable, to any network
set up on the new standards.

Two aspects (** layers ”) of
data communication based on
International Standards
Organisation (ISO) concepts
are covered. One, the so called
" transport ” layer, is the
subject of an ISO draft pro-
posal and guarantees end-to-
end transfer of data over any
medium. The other is a new
ECMA standard' for lower
levels (that is, nearer to the

user) employing CMSA/CD —
carrier sense multiple access
with collision detection.

- At these “ pb^cal’and data
link " levels, the ECMA stan-
dards are largely compatible:
with Ethernet sq ‘.that,; in-
essence* ECMA has endorsed .
Eth’ernet-Hke Systems.’ • = ..

-Asked if lie thought that
this -flew in the face of broad- -
band (higher data - capacity)-,
support developing in the .
UJ5„ Robb’WiUnot, ICL’s
managing director said: “Tt is
not an issue.” • .

He felt ' it ' much ■‘rimre
important to 'crystallise the
lower capacity base-band
approach. He mSde-the point
recently . offered by .Paul
Strasman of Xerox, that a .
base-band systeui eonld. easily :
be embraced byV broadband '
network— it - would simply .
become one of ' the 1 -latter’s
channels.'

solid state cameras to identify,
position, orientate, differentiate
the features of, and even
measure parts.

“Structured light” has also
been used for 3-D inspection: a
“sheet” of light is projected at
the object and the irregular
lines of light caused by the
object’s shape and seen by the
camera are compared with
known models.

These and many other tech-
niques have been applied to a
variety of material handling,
visual- inspection, assembly and
part presentation tasks in real
industrial environments.

In the last IS months how-
ever, some fascinating develop-
ments have been under way.
For example, a computerised
visual system has been
developed that- will recognise

flat parts even when they are
touching or overlapping. The
machine remembers hole size;
position data and boundary
descriptions which it uses selec-
tively to identify those seg-
ments of the part that the
camera can see, predicting the
identity of the whole.

Probably the most ambitious
project in this field though, is
the development of a modular
programmable assembly station'
in which a number of communi-
cating derices carry out a com-
plete task.

SRI has linked ^together a
Puma 600 robot with gripper,
an Auto-Place limited sequence
manipulator with a servo con-
trolled rotary base, a table that
can move in X and Y and rotate
under servo control, a vision
module, and a visually con-

trolled bowl feeder that can
look at several kinds of parts,
sort them into three channels
and reject defects.

Each of tiie modules carries
oht a specific task, thus becom-
ing a building block of an
assembly station. Every module
is controlled by its own com-
puter -and the modules are able
to communicate with each
other over a 1 MHz Computrol
Megalink using a coaxial cable
bus.

There have already been
some experiments in program-
mable assembly using this
station, including the assembly
of a mains ping and the placing
of snap-in chassis components
such a* rocker switches. Cur-
rently, the handling of flexible
components such as wire and
cable is .under investigation. i

Maxial is aimed at
hotel management

INTERNATIONAL AERADIO,
widely known for its communi-
cations and computing systems
in the aviation industry, has
launched a system called Maxial
aimed at hotel administration
and management . ■

Suitable for hotels of 150
rooms or more, Maxial is based
j on a cinicomputer and can sup-
port up to 64 visual display
terminals which can operate in
any mode required.

.. Thus,, in the front office of
the hotel for example, terminals
normally used for customer
check-in can at any time be

switched to check-out, or some
other task. ...

Other VDUs operate in
restaurant or bar, others vriH
be devoted to reservation work
in a back office . while printers
can produce guest's bills or
management reports. . / •

All of these programs’ can be
tailored to suit the indiridual
hotel so that payments .and re-
servations by guests can be re-
corded in any way the hotel
wishes, while - back office, ac-
counting can be performed by
the machine to. suit the hotel's
existing financial procedures;
More on 01-848- -’2411.

Clamp-on ammeter is
HEME’s first product

A NEW company called HEME
International, set up to exploit
Hall effect technology and now
part of the Pilkington Group,
has brought its first product
to market in less than six
months.

Known as HEME 1000. it &
a clamp-on ammeter which can
measure currents up to 1,000
amps at frequencies from DC to
1.000 Hz, to an accuracy of 1
per cent An LCD -display is
employed.

When the plane- of a thin
semiconductor is placed at right

angles to a magnetic field and-
• a current is passed through it*
a voltage appears which .is
related to the field. In the new
instrument the effect is used:,
to measure the magnetic field'
surrounding a .power conductor
carrying a - current,, thereby-
determining that current '

The instrument has . an
analogue output provided so
that current can . be displayed
on an oscilloscope or chart
recorder, allowing complex
waveforms to he seen. More- on
0695 20535. v ' ' '

A NEW. benclr lathe WmCK 3s
claimed . to., improve - ; existing
available training of operators
for [computerised -= : numerical
controlled lath es. .is., being put
on the market by . a’snall West
Yorkshire company.: - . - •-
. The. ORAC _ benrii training
lathe, .' produced by Denford
Machine Tools-o£ Brigjhouse and
costing under £4,(X)9,.is-a. com-
plete miniature, Vensen of a
-computerised. lathe.-..- . . •

The company claims that un-
like miniature training lathes
already on- -the market,. ORAC
can be interface# with table-top
mini-computers • such' -• as the
Positron 9000. -!• . •'* - '-

This, tiie ' company . argues,
allows extended memory Vend
storage, facilities which is -an
aid principally for those. doing
the teaching. ' '- -

The computer Hiik. also gives
the. capability>of -using the lathe
remotely . — .direct -numerical
control — which is a copy of how
full-size lathes can be. operated
from a central computer.

Denford; says that .a.- compe-
tent student whb has completed
one year off-the^job training can
be trained* to bperfcte--a' CNC
lathe, in 20 daSsroora 'hours. .

- The ORAC trainihg r lathe has-
a visual display screen:'. which
. can .. request -and ' the

trainee’s inpuC TEere is alio a
stereo-audio teaching facility
with headphones^ ' J

AH production cycles can be
automatically, / transferred, to
magnetic-, tape -for '.repeating
. operations mid for Checking by
tfae’rtntBfcj: . , •

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Robotics vision sensing

f iTT> TMTiJ TT’ \ FI tmz <tVI *M-T»TTI. L « ,

mm

LIKELY TO prove useful in -
vision sensing in robotics are
two new charge coupled device
(CCD) cameras from Fairchild.
Applications will also occur
iin automation in general and
-In surveillance.

The sensing element Is con-
tained in a cylinder of 58 mm
diameter and 51 mm length.
It is environmentally sealed.

able -to - withstand ; lOg > of"
acceleration and shock and 2g
of vibration, to 2,000- Hz. ...

Two versions are offered. One
is for high resolution imaging
with a composite interlaced
video output of 488 lines by
380 points, and the other is
non-i ntcrlaced to give 256 x
256 elements. The one-off price
of both versions is £2,250.

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On the rocks.

MARTINI

Whaf could t>c hur<Ur to resist thin 'lari ini Oi v. With its perfet t hlend ot the choir est wines arid h<i hs.Only perhaps.
Martini t.)rv cm the roc Ks.lSec what 'Tart ini does for an ic e c ube is reads rather <Sd//linq.

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Financial Times Wednesday, June 23 1982

Owners await
settlement over
Falklands ships

BY ANDREW 1 FISHER, SHIPPING CORRESPONDENT

-THE GOVERNMENT has paid
out more than £54m for hire of
British merchant ships ■ to
accompany the Falklands .task
force, but their . owners still
have no idea when they, will get
them back after the fighting.

Only the QE2, Cunard's cruise
liner, has returned. It is under-
going a substantial refit in
Southampton before sailing
again with luxury-class passen-
gers in mid-August.

Cunard did not know until
the QE2 was well past Ascension
Islands that she was returning,
thus giving it little time to pre-
pare for the refitting.

The main - work, which the
Government will pay for, will
involve the removal of the two
helicopter decks and the restora-
tion of the swimming pools.

The QE2 went into drydock
at Vosper Shiprepairers, part of
British Shipbuilders, at the
weekend. Cunard will also
spend more than £lm on refur-
bishing the inside and outside
of tiie ship. It does not know
how much of this cost the
Government will meet

The QE2, which will start
cruising again on ‘August 14,
produces revenues of about £lm
a week, though its running costs '
are high. Both Cunard and
P & 0 are worried about loss
of business through people hav-
ing booked elsewhere.

Compensation is the subject
of complicated talks with the
Department of Trade, with com-
panies arguing strongly about
“ consequential losses ” result-
ing from the erosion of their
market positions.

For the chartered vessels,
such as the 14 tankers, mostly
in the British Petroleum fleet,
fees were fixed in line with open
market rates. But final pay-
ments for the requisitioned pas-

1931

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1955

M > : ! r : t n* ' 'COivrs
.p,n><’r.r of
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1969

Multitone u ins
Queens Auvsrd
for exporting

Multitone
profits exceed
£1 million

multifone

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Offer a loyal toast

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UK NEWS

senger and other vessels could
be adjusted, as there is no (dear
market rate to go on. Some
companies may . already have,
been paid too much.

P & O's cruise flagship, the
Canberra,' is still with the task
■force. So is the older Uganda,

. which is doing hospital duty.
The company reckons it will
take six weeks to get the
Canberra back into cruising
shape.

Both ships have been down in
the area far longer than the QE2
and have also had helicopter
decks fitted. The company will
have to launch a major market-
ing drive to sell the Canberra to ,
passengers again. i

Altogether, P & O has five
ships in service with the task
force. The fifth, the Strath ewe
general cargo ship, is due to
leave Southampton for the Falk-
lands this week.

A number of Britain’s other
leading shipping companies,
such as Ocean Transport and
Blue Star Line, have had ships
taken for Falklands service.
Nearly 50 merchant ships have
been involved in all.

Among the other Cunard
ships were two container
carriers. One of these, the
Atlantic Conveyor, was
destroyed by an Exocet missile.
The Government will meet the
cost, though it is not known
what figure has been agreed.
The ship had an insured value of
£&5m. but would cost well over
£20ra to replace.

Cunard, part of the Atlantic
Container Line (ACL) con-
sortium of European lines, had
already planned before the
crisis to replace several older
vessesl, including the Atlantic
Conveyor. It has not decided
where to build, bnt Japan or
South Korea appear the most
likely choices.

Factory plans
cost £22m

By Robin Reeves,

Wales Correspondent

A £22m programme, to revamp
the. . Treforest ■ industrial estate
in South Wales over the next
ID years and provide 500,000 sq
ft of new factory space was un-
veiled by the Welsh Develop-
ment Agency yesterday. .

*Ehei ; 'programme involves
spending £6m on infrastructure
improvements and £16m on fac-
tories and modernisation of
older premises on the 45-year-
old estate.

A special 12-acre site is also
being reserved for a major in-
dustrial project, requiring more
than 200,000 sq £L
The completed modernisation
programme will add about 3,000
jobs to the present 6,000. -
The estate was- founded in
1937 to create employment
opportunities in the depression-
hit South Wales mining valleys.
During the Second World War
it became a popular location for
many war-time production pro-
jects and by 1944 was employing

Sherpa

A MUCH expanded and heavily
modified range of Sherpa light
commercial vehicles is launched
today by Freight Rover, BL’s
van and light truck subsidiary
which became part of the Land-
Rover group at (he end of 1980.

It Includes four-wheel-drive
and. electric versions and is the
first fruit of a £30m investment
programme which will be com-
pleted next year when. a new
vehicle, the MT 210, will be
launched. ■

This will go up to 3.5 tons
gross vehicle weight and will
plug -the gap between existing
Freight Rover products, which
have' had an upper limit of 2.5
tons, and the trucks of Lcyland
Vehicles. BL’s heavy commer-
cials arm.

. Today’s launch marks the first
new product from the company
since it was transferred from
BL's volume car business 19

takes to the road again with a slimmed-dov

Freight-Rover’s investment is now paying off. John Griffiths reports

months ago. There has since
been a major overhaul of opera-
tions at the Solihull plant. The
work force has been cut by half
to 1,200 and productivity has
gone up 'In terms of output per
man by nearly a third.

The dealer network has also
been reviewed; SO new dealers
have been appointed but this is
a net gain of only 30, bringing
the total to 350. This reflects
the fact 'that a number of
dealers were not performing to
Freight Rover’s new and stricter
standards, according to Mr Tony
Gilroy, managing director. A
network of 400 dealers is envi-
saged after the MT 210 arrives
on the market

The new Sherpas. which were
styled by Ogle Design, are
aimed at further reversing last

year’s slide in BL vehicles’
. fortunes. Then, the total lifflit
commercials market (excluding
car-derived vans) fell by 17 per
cent to 98,700, but Sherpa sales
fell by 42 per cent

Mr Gilroy attributes the poor
performance to two main fac-
tors; a past reputation for poor
quality and reliability, and in-
creased penetration of the
sector by Japanese vehicles,
whose share rose last year from
16 to 25.6 per cent
He' says the effects of the
productivity and quality drive
are now starting to show: Sherpa
sales have gone up by 21 per
cent so far this year, roughly
in line with growth now being
seen in the sector overall. At
the same time, pressure from
Japan has been sharply reduced

by Japanese makers’ agreement
to market prudently — which
means restricting sales to about
11 per cent.

Freight Rover's performance
Is probably better than the bald
sales figures suggest, however,
as the market has been
expanded by two major cut
price promotions by Ford for
its market leading Transit.
Freight Rover so far has steered
dear of formal sales incentives:

Freight Rover's hopes that
the new Sherpas will expand on
its current 10 per cent market
share are based on design
changes io improve perform-
ance and durability — body
panels, for example, are welded
vertically rather than hori-
zontally on the new Sherpas,

increasing corrosion resistance
by a claimed factor of 10— and
the broadening of the range.

Among innovations are;
panel vans with sliding side-
load doors and hatchback-
style tailgates; a 2.8 gross tons
van; high-capacity walk-through
and 400 cubip foot capacity
Luton vans; four-wheel-drive
electric, liquid petroleum gas-
powered and leisure camper
versions.

The three engine options are
3.7 and 2.0 litre “O” series
petrol engines, and an improved
version of BL’s IB litre diesel.
Overdrive is optional on
manual four-speed gearboxes.
The vehicles are also claimed
to have the lowest Interior
noise level of any light com-

mercial vehicle on the market
and paint quality is said to have
been much improved toy a new
fiom automated painting
facility.

The four-wheel-drive version
is the first from a UK volume
manufacturer as a standard
production model.

The electric version, deve-
loped in conjunction wiuh Lucas
Chloride EV Systems, is built
on the Sherpa’s production line
but is more of a “toe in the
water” exercise to stay in touch
with alternative energy deve-
lopments. Twenty pilot vehicles
have heen built, all of which
have been sold to selected fleet
operators for detailed appraisal.

Prices of the new Sherpas
range from £4.433 (including
' taxes) for the basic City up to
£7.630 for the four-wheel-drive

and £S.3S4 for the camper.

Canned French wines to go on sale

Government attacked over EEC stand

BY GARETH GRIFFITHS

INTERNATIONAL Distillers
and Vintners, Grand Metropoli-
tan’s wines and spirits division,
is to introduce canned wines to
UK shops in the summer, in an
attempt to tap a convenience
market.

Each 25-centilitrc can of red
or white French wine will cost
a recommended 78p. 3DV has
reached marketing agreements
with several large chains,
including Associated Dairies
and Little woods. It is holding
talks with J. Sainsbury and

wants to sell in duty-free shops
and the airline markets.

The two-piece aluminium
cans will be produced by Metal
Box. IDV says the wine will
have a shelf-life of at least six
months and will be more con-
venient for storage than either
glass containers or wine in the
box. Each can contains the
equivalent of two glasses of
wine.

Distributors’ trading margins
on the present price are an
estimated 15-20 per cent IDV

believes that its approach will
expand the overall wine market
and is aiming its promotional
literature at younger drinkers.

Norton and Langridge, IDVs
specialist wine shippers is
handling the project and will
market cans under the brand
name La Sonnelle.

Marketing executives are
confident that the company will
avoid the tight squeeze on
canned beer prices by super-
market buyers with their vast
purchasing power.

BY USA WOOD

GOVERNMENT opposition to
EEC proposals on environmen-
tal protection has been criticised
by the Council for the Pro-
tection of Rural England.

EEC member slates have
been negotiating a common
approach to industrial develop-
ments for two years. However,
Mr Giles Shaw, a junior en-
vironment minister, will tell
the EEC tomorrow that a pro-
posed directive is unacceptable.

Mr Robin Grove-White,
director of the CPRE, said yes-

terday that a common EEC
approach to the environment
was crucial. “A Community-
wide directive on the matter
would give environmental
assessment the status it merits
in the Community’s affairs,” be
said in Cambridge.

"To a large extent, in this
country, our planning system
has provided a means of en-
vironmental assessment — but
for Britain alone. Hence the
need for European, action.”

Mr Grove-White, the British

member of the European En-
vironmental Bureau, a coalition
of conservation bodies, said
the departments of Energy, In-
dustry and Agriculture were
opposed to "any bint of fur-
ther environmental regulation
over the activities of their
client industries."

The Environment Department
said the proposed directive
was unacceptable because its
mandatory nature did not match
British development control
procedures.

business than

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W

Fortoday’s schoolchildren, Office systems don’t simply

computers are becoming as much a increase productivity; they remove
part of the classroom furniture as much of the repetitious tedium of

desks orwall charts. Nowa Govern- . office work,
mentprogramme aims to ensure Desk-top computers will

eveiy school in Britain has at-least soonlinkeveiy office, from Chief
one microcomputer .Executive’s down, to provide a com-

Athome,too,more and more . munications system so efficientthat
children are using computers as a it makes the telephone look like

naturaleveiydaypartof their lives.
It all means that our children

semaphore.

The Government knows that

already have at their fingertips far - Braiging the new technology to _
more sophisticated and efficient offices is as vital as putting it m
technology than you’re likely to schools and factories. And that it
findjn90%oftbeofficesmBritain. mustbe done atleast as comprehen-

If ffiat doesnt make you sit up industrial competitors are doing it.
andth^itshould. Thaft ^1982 is information

Inofficesjustasinfactones, Technology YearJ and why there

the application of Information is a joint Government and

Technology is going to industry campaign to bring

revolutionise the businesses J hometfiefuHimplications of

that adopt it ITforaIlBritain ? smdustries.

. And bury the ones that don’t tkhmxogyqZ and the speed with which

3HEK^

those implications are being trans-
formed into facts of business life.

If you haven’t yet investigated
the enormous possibilities of IT, now
is the time to do so. Because, veiy
soon indeed, the skills that presently
only our children accept as a matter
of fact wil l be the only skills relevant
to much office work.

Information Technology Awareness Pi-ngra mme.
Dept. KG4,29 Bressenden Place, London SWIE5DT.

I Please tcllniemore about Information Te rhnnin fry I
and your Awareness Programme. |

(Company)

(Position)

Address (Home/Business)

'■ ' FT 23/6

Please also send me details of Department of
Industry InformationTecfanoIogySupport Schemes
in Schools □ General Industry □ Robotics □
Flexible Manufacture □ Software Products □
Complete and neat the coupon in lnrormaUan Technology
Awareness Programme, DepuLG+,29 Bressenden Place,
Londoq SUIE5DT.

85 BbuEy Stiee ^ lArodonSWLT«3:6l-235' < 366t

UK NEWS

Rolls-Royce looks to outside suppliers

BY JOHN ELLIOTT, INDUSTRIAL EDITOR

THOUSANDS of parts for Rolls-
Royce aero-engines which have
traditionally been made by the
company in its own factories
are to be bought from smaller
outside suppliers during the
next three years.

This is pan of a major cam-
paign by the State-owned aero-
engine manufacturer to improve
its productivity at a time when
it is facing increasing worldwide
competition for future orders.

Rolls-Royce wants to achieve
economies by cashing La on the
flexibility of production that
can be achieved by smaller
businesses which also work for
ether companies- At the same
time the company is stream-
lining its own production
techniques.

The initiative is revealed in
a report published yesterday by
the House of Commons Indus-
try and Trade Committee,
which welcomed the company's
plan to achieve profitability
next year and said that further
productivity improvements were
needed.

Productivity improved by 25

per cent between 1978 and
19S0, when the company's busi-
ness was expanding rapidly, but
more recently it has found it
difficult to maintain progress in
a falling market

About 77.000 parts are used
to make a Rolls-Royce" aero-
engine and until last year 27,000
of these were made - within -the
company. The target is to reduce
this figure to 20,000 by the end

of this year and 10,000 by the
end of 1984. - -

“ What we are doing in Rolls-
Royce is off-loading, smaller
items to smaller - companies
which are much more- capable of

Car workers put on short time

BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT

ROLLS-ROYCE Motors is to
pat 2,000 production workers
on short-time working
because of a fall In sales in
ils two major markets.
Britain and the U.S.

From July 19 the factory at
Crewe will work only four
days a week, reducing output
by roughly 20 per cent to
around 60 cars a week.

The company said it had
decided to operate short-time
working rather than institute
redundancy programme

because “ the underlying
demand for our cars is strong
and we want to be ready to

meet the upturn jn sales when
Hie economic situation
improves.”

In January this year Rolls
forecast that its total produc-
tion and sales for 1982 would
improve by between 5 and 7
per cent to around 3,500 cars
and that the extra output
would mainly be for North
America.

But retail salos in the U.S.
by early June had reached
only 342 compared with 460
for the same period in 1981.

In Britain at the end of May
Rolls registrations had
dropped from 666 to 417, or

37 per cent compared with a
decline of 2,8 per' cent in total
new ear sales-

Rolls would not give details
yesterday of its new forecast
for production this year: Out-
put was being brought into
line with demand by short-
time working for at lest' two
months, and was not being
changed to meet new sties
foreeasts, the spo kesman
explained.

Bolls, which is a. subsidiary
of the Vickers engineering
group, baOt and sold 3475
cars last year, 1200 of which
went to North America.

doing the threes, fours, fives
and so on of the various things
we have got than in a big
organisation like Rolls-Royce.”
Lord McFadzean, the company’s
chairman, told the committee.

“In -doing th is , we will be
able to reduce very considerably
the large manufacturing infra-
structure that is an inevitable
consequence of producing very
large nu mb ers of parts of that
nature.”

At the samp - time the number
of factory inspectors is being
reduced from a ratio of one to
about - three manual workers to
one in 10. This will contribute
to the company’s substantial
redundancies; last year its
labour force was reduced by
about 6,000.

The select committee ex-
presses concern about the lack
of - parti am entary contort over
.expenditure on major projects.
Parliamentary approval should
be required at the outset.

Bouse of Commons sixth re-
port from the Industry and
Trade Committee session 1981-
82. Rolls-Royce Ltd. SO,. £7.

Rise in De Lorean sales strengthens rescue hopes

BY JOHN GRIFFITHS

SALES of De Lorean sports
cars are expected to reach 300
this month, far below the 1.700
a month prediction at the
launch lasL year.

But the number is well above
the May figure of 236 and nearly
double the 157 of April — in the
immediate weeks after the
receivers moved into the Belfast
plant.

The pick-up in sales has
strengthened optimism among
receivers, suppliers and credi-
tors that a rescue by an as-yet
unnamed UK consortium will go
through.

Representatives, of the trade
creditors, numbering more than
200 and who are owed a total of
more than £40m, yesterday
echoed the sentiments of joint

receiver Sir Kenneth Cork in
Belfast on Monday that he was
-reasonably optimistic" about
a rescue.

Mr John Putt, chairman of
the trade creditors* committee,
said there was mounting confi-
dence that agreement would be
reached by the end of this
month. The creditors’ commit-
tee has given fuH backing to

the consortium’s rescue • pro-
posals. •

The consortium’s plans are
being examined by two City
finance houses. It is understood
to have already secured partial
financing for an initial £10m
cost of acquiring the plant on a
lease or morftgeg basis and
resuming production.

However, ' Sir Kenneth’s

remarks that production in the
closed plant may restart in
autarnn with a workforce of
between 1,000 and 1,500 raise
questions about the con-
sortium’s plans.

There are still' about 3,500
cars unsold in the U.S. and at
the Belfast plant, which is a
year’s supply at current sales
rates.

Period of
self-doubt
is oyer
-Lawson

By Peter Riddell, Political Editor
THE TEST of national wity
of tiie Falklands crisis sig-
nalled dearly that "the long
years of retreat and self
doubt” are over, Mr Nigel
Lawson, Energy Secretary,
said last night ' -

Delivering the first lecture
in memory of the late Patrick
fl other in the City. Mr Law-
Son elaimed that the psycho-
logical and moral climate in
Britain had begun to change.

“Defeatism is now in the
retreat, inflation is now at last
under control and the trade .
union problem has become
less fearsome. There is a new
attitude on both sides of in-
dustry, resulting in an un-
paralleled improvement ~ in
•productivity and efficiency.” -

Mr Lawson claimed: “The
tide has turned: and it was
at that very turning poiitt
that history presented us
with a momentous cha ll e n ge
of the Falklands, with all that
so triumphantly ensued. The
profound importance of this
event cannot he over-empha-
sised.”

It was more than a ran ark-
able military victory winch
exorcised the ghost of. Sues;
it was a test of political and
national will.

"Nothing could have sig-
nalled more clearly that- the
long years of retreat and self-
doubt were over. A new self-
respect, a new self-confidence
and a new sense of -pride in
ourselves has been born. It
is the rebirth of Britain.”

Year’s GDF nse
estimated at 0.5%

. BY MAX WILKINSON, ECONOMICS

THE WEAK economic recovery
which began, fast year faltered,
in the first three months of this
year, according tn . official .esti-
mates for gross domestic 'pith
duct published yesterday.;

The figures show- that the
estimate of national output fell
•ma rgin ally compared with the
fourth quartfer . tif last year.
However, estimates for "total
national expenditure, and total
national income 7 shofv * a small
rise between the two quarters.^

In theory aH die: three;
measurements of GDP' should 1
be the same, hut the figures; de-
rived from different, sources,
rarely come to the same total.
Recently there have been some
quite wide discrepancies be-
tween the output-based .:and
income-based ; estimates ' for
GDP. ' .

• The average.; i# : the three
measures' suggests , t Jmi the
index -..of ' GDP of ;; the .first
quarter of the year was i05.8
(1975=1001 . compared- with

i05.7 '- iH of

' : 198£.\ ■ r r-
• Because ofthe: civil -servants’

. strike last , yeaf» no- average
estbmite ts: ava2tirte the
second.and thin! quarters. -Ho w-
ever, it-iS.aWknned ;tbai GDP
mt3ae quarieroC thfe^year
Was'a&oot O.SJlfcr rent. higher
thai^'a year eaj3ier:r -v • .
.ii; At- current: • market prices,'-
“ moneyj GDP " rose- by 2 per
cent' between the f OuMh-quarter
of island the first quarter of
1982.' The ri SS'ctfer the foil
-year to tte : fiist 'qparter ef this
year was. 10, per oesot i . v...

• Read rncome for fixe . country
■ as a whole, as measured byreal
national , disposable i n c om e, in
the /six months to the end of
March was about ■ the' same ; as
the 'level a.ye ar~‘ earEeiv;; - * •
The figures- show flat com-
panies ; .continued _••• ter .tei&ace

stocks in the , first 'quarter; of'
this year but at A'.ippefc jadwAr
rate thin- in'ttie/earher ipart of
iflsi:; r v f I;*'-'.' .•

GROSS DOMESTIC PRODUCT
: Index 1975=100 — *

. , t • Income

data

' Expenditure:- -
V: data; v i

'"^Output
• :■ 4^3

197?

.1019

• ' \ ViiM-: V v

1980

106.7

. ' . 708.9 - ^

t ‘ ; . wa

1981 fct

105*

10 5*

.IBM

2nd

- —

. (105); v-.V

-104-1

3rd •

; <106) ,: ; . .

ri.lOM

4th

10514

106J-- „

105j0

1982 1st

105J .

' 107Jt r .

nks

Data h still incampfcte'as a result of civil servants’ strike in W8T.;

Falklands in White

THE long-awaited White Paper defence estimates will provide

on Defence, issued in London
yesterday, stresses that the
Soviet Union and tier afl?7es

andon a useful starting point for dis-
tbe missions on the lessons of the
SGfTes FaTtaand crisis. A full study is
o tKa necessary before the 'Govern-
ment can take “ reasoned and
considered decisions on what

David Tonge studies details of the Government’s strategy for national security

reshape ” conventional forces, says the dqcument

remain the main threat to (5ta necessary before the ~Govem-
security of Britain. ment can take “ reasoned and

The White Paper confirms decisions on what

that that Government is com- Jdjusteients need to be made,
mitted to the major defence ne aads -

review carried out last year. “ In the meantime, the state-
• However .the - only references ment is Presented to Parliament

STRATEGIC NUCLEAR .
FORCES:

The White Paper justifies the
decision to modernise Britain’s

It traces . developments in
Trident since it was announced

provide. We are therefore
planning for a four-boat force.”
The paper repeats the argu-

adjustments need to be made,” nuc]ear deterrent by spending Polaris system with the Trident

to the Falkland crisis are in a " * uracripuun or evems
brief foreward by Mr John preceding year and of

Nott. the Minister of Defence. the programmes and activities
„ .. ^ .. „ in progress in the period Iead-

Mr Nott praises the pro- j n g up to jfar C h when the final
fessionalism, preparedness and . . .....

flexibility” of British defence bas,s ° f 11115 documen t was

£7.5bn, the current forecast, on
In the meantime, the state- the Trident n (D5).
it is presented to Parliament Possession of “an independent
a description of events and invulnerable strategic
the preceding year and of deterrent" will .reduce the

on July 15 1980 that Britain meats for* the British decision
would replace its CTisring to build a submarine of the
Polaris system with the Trident size of the new and large Ohio
1 (C4) missile deployed in new class design rather than the
British-built submarines. 640-class submarine carrying

New sonars are being the Poseidon and Trident 1 (C4)

as a description of events and invulnerable strategic
of the preceding year and of deterrent” will .reduce the
the programmes and activities chance of Soviet attack,
in progress in the period lead- It does not suggest that a UK
ing up to March when the final deterrent is a substitute for the

developed.

sub- missile.

the total defence budget. Older
equipment types are being
phased out. in line with the
Government's atm of enhancing
the "hitting and staying
power ” of Britain’s forces.

The White Paper makes no
allowance for ships lost in the
Falklands. It says HMS
Invincible will still be handed

EFFECT OF TORMDO AND
TRIDENT ON DEFENCE
BUDGET /

BBRRKST XS^t-CF
EGLBMBU Budget

Trident-

■terrent” will .reduce the marine will have torpedo tubes
lance of Soviet attack. for self defence. The Mini stry

It does not suggest that a UK also has’ decided that the ?ri-

It stresses the disadvantages over to Australia. However, it

which would arise when the US
withdraws its last Trident C4

underlines the importance of
increasing the size of the

dent force will have a new re- missiles in the late 1990s, leav- nuclear-powered submarine

UI.IVH VUL M U W l & S IALV 1U1 Ull# Ut.il L iVlWIi TV**-* UHrw ^ , , . ,« .

U.S. nuclear guarantee, but' the actor and propulsion system, the ms 85 5010 °P erator

efforts in the Falklands.
British response, he

The agreed,
says. The '

reed ” Warsaw Pact js . more likely to PWR

L. „ _ __ x be deterred by a second, sub- reactor

Tne White Paper argues that marine-launched ballistic missile PWR 1

(pressurised • water system.

2), rather than the
being, installed - : in the

The new generation of sub-
marine will each have 16 tubes.

additional
with. 300

submarines. \ • •*

Given the resulting increase
in operational availability of our

does not mean that Britain will

showed That its force structure Soviet readiness to use military force than by Britain spending current generation -of nuclear though the Ministry says this

•4s adaptable enoush to permit power in . Afghanistan and on. say, two - additional submarines. ' — - does not mean that Britain wtil

2 Poland means that Western armoured divisions with 300 “ Given the resulting increase JESSf* ® < ? sible

to developments both withm and BOVernmem _ must extra tanks. in operational availability of our mmber of warheads. ■

outside the Nato area : with the * tre 5?5 e ? -w* arbnnwieHw. th* sin- wp hmo rrnirimXd that The ongmal basehne estimate

force as rapidly as resources
will permit.

The paper supports the
Government’s decision to have
a smaller surface fleet It des-
cribes in detail the weapons

TORNADO ^ -

THfflHfT -Q1I-S5 -V'rV-.l.-- 1:

7 8.3
TEARS -

lOTII. :■* ■

deploy the m a x i m um possible; being provided for the, British

number of . warheads. - - - - — -

and' ^add^.. tiiat

Gulf in mind, the alliance is pay- their collective defences. British e Ss

in; incressins attention to out- moves to this end inclnde fimda- dfci ^ on on m0[ ^ grounds 0 r

of-area operations. mental decisions to modernise who for an alternative

Mr Nott suggests that the the country’s strategic nuclear use of resources. Nevertheless,

parliamentary debates on the deterrent and to strengthen and we believe they are .wrong,”

Gulf in mind, the alliance is pay
in? increasing attention to out
of-area operations.

acknowledge .the sin- boats, we have concluded that , or ? gir ? a ^ ba^etine estimate. -Government has concentrated'

cerity of those who criticise this it would no longer be sensible ^ or developing the Trident C4

decision on moral grounds, or to consider having a five-boat foree wa 5

who argue for an alternative force, despite the • increased forecast at The

use of resources. Nevertheless, insurance against accidental loss 1 ° cr eas y .- are . ” ne t0 , co ® t

we believe they are wrong,” oV damage which this would 5? er gt f >mariI>gs

■ (£47om), the D5 missile system,

(£390m), exchange- rate, changes
(£710m) and inflation (£800m)..
However, the White Paper

The right veMeatthe right
cost. When you aie operating a
van fleet, knowing what you
are looking for is only half the
problem.

Too often when the price
is right the vehicle isn’t And the
total cost of operation is some-
thingyou can’t always predict,
when reliability is such an
important factor.

The new Sherpa was put-
through its paces by a stunt .
driver, in a series of unortho-
dox but punishing tests.

It was driven off athree foot
ramp at speeds up to 50 mph .
anditemergedintact, dramatic .
proof of its basic strength and
durability •

Vertical body seams and a
newcathodic electrocoatpaint
treatment are a part of a 16
stage anti-corrosion process.

Altogether the new Sherpa -
embodies over twenty five

on ' the “neglected area" df
Britain’s air defences. The new

Project.

DEFENCE INVESTMENT DECISIONS,- 1981412

Nimrod early-warning aircraft HaMer GR5 CAY88) offeTO^^supportworft,r:7. r ^. 7 :' ^
should enter service next yeaf. New heavyweig^ toipedo ; 1 • V ■■ .775 .

- The paper also stresses that Improvement «rf mam batde fcpifcx, nKdutfng tfTerm^magirrgv. ;. ^ : ^_450
the West needs to be aware (if Tiadted Rapier (Mark 1} Ahny AJr Defence q^stem •«' - . . : :>.^ f 23S

threats to its own and its New tracker for Sea Wolf shipborne point defeoce mtrile systems
(£7 10 m) and mflation (£800m).. fiends’ security in parts of the Satellite communications Skynet IV ,; ; ^

Sat W0rld outside the NATO area.- fl^triefieM-ArtffieryTaigrt -Engagement System (BATES)

SE Tndem It thjfi ^ be ^ n aroply Electronic «ipport for submarines.

?^ted by the Argentine — ^

?l ^Si^ yeaiS th 15 ^ Srand 0 Lut? e GeoS2 dimd nrcciin: MinPT T —

DEFENCE BUDGET

The new Sherpa
Built to take it

significant modificaticais, most of them
based on customer advice.

All this on a base of proven engineering
- and fuel economy. - ■

And it's- now more versatile too. There's
an even bigger range of factory built opt-
ions, including a sliding side door that will
take a pallet from a fork-lift truck.

And if you have a particularly difficult
specification we’ll discuss your needs with =
you.designandcustombuildanadaptation

that precisely meets your fleet demands.
List-prices start at £3855. ’ " '

Write or telephone Rory O'Connor at
.Freight Rover.

' He'll be glad to answer any questions
you might hive. .

. -And welcome you to a* list of satisfied
customers that indude lage public
corporations like the Post Office, as welTas-
companies as diverse' as John Laing,
Curfys and Tarmac.

TVburn Road, Erdmgton, Birmingham B248HJ. Tel: 021-323 1777. Telex: 338641.

It explains the 'three levels,
at which defence resources can

DEFENCE BUDGET

The White Paper says that the £ w L h t iVtlrST
Chevaline development pro- ^° u sht to bear to protwt

gramme, devStokeepS e5se ntl » 1 . m tere5ts

Polaris force ' effective until JSSfl?*’

Trident -enters service, is _ stat -“’ . peacenme^

PROCUREMENT

PROGRAMME

mh. n tfubTuS ass ?* 1 f “-tat™ . ^

Trident -enters service, is states, pe acenraa ;

“ essentially TOtoplete^ deployments to strategically

It says test firings off Cape important areas and in the last
Canaveral, earlier this year, intervention for

were successful and the systenJ de i e £ ent or defensive purposes,
will eater operational Svice u We are pressing ahead with
soon. It itoSStaTSS the unprovemento to «ar tater-
Britain is spending £300m to fit capability which we

new motors to Polaris missUes. ®“2St m -. Iast y state *
The White Paper stresses the 3 wntM..

“vital
British -

contribution

conventional

■which The Territorial Army, it goes
forces on ' makes a key contribution to

make on the Central Front in

the defence of the home base

Europe, in the Eastern Atlantic *5

and Channel, and in defence of

iaao/8t

J&TRBEAROia,
ri iotvBQiwevr

1982/83

welcomes the support of civil equipment is one of the greatest
resources to - Britain’s defence problems the Government faces

the United Kingdom base.” monies me sifoport ot emi equipment is one 01 the gnatest cessor.

„ resources to -Britain’s defence problems the Government faces “The extent of tidscost

7"* • , ^ °7H? aD * n i s . & T t - effort, shown in the - Falklands In managing defence. - ■- escalation is difficult to calcu-

pnonty in 1979 had ueen to crisis. The ' conversion of “The steady growth in the late with precision. Examdna-
bnngal three services up to merchant shipping to meet real cost of equipment is not, of tion of procurement records

stre^^. Wdacms ti has cut, military requirements was a course, a new phenomenon, over recent years suggests an

wastage >n ttie Kayal Navy from vital part of the efforts which During recent years, however, average annual figure, over and

7 tp 3 per cent has overcome went into assembling the Task it has become particularly above Inflation, of 6 per cent to

a 10 per cent shortage of trained. Force. alarming as the frontiers of 10 per cent on capital prbduc-

men in the array, and has cut “The - ingenuity and sheer advanced technology have been.,- tion 'costs ofmaior equipments
applications for premature hard work put in by Industry extended. ... The new Type 22 Some equipments exceelTthis’

voluntary release in the Royai at very short notice made a Frigate.is three times as expen- With others ( notatrtvmiccessire
Air Force from 5 to 1 per centi major contribution to the sive in real terms as the classes of nuclear sufemarTn*^
The White Paper says the, success of our operations in the Deander. ’ ~ suranannes)

Government has increased the South Atlantic,” it argues.

share of the defence budget
going to proCureent -of equip-

DEFENCE PROCUREMENT

“The Harrier aircraft is four
times Itoe cost of the Hunter;

The paper stresses that the.. and -a new axtiUery shell is

ment Tliis accounts for half .escalating real cost of defence doable tiie prieft of its prede-

rerf cost growth has been very
snail. But, some .60 per cent of
the defence equipment budget
has .proved to, be lmUe to
sigoificant cost. growth."-

Railways board ‘needs
clear policy for future’

BY HAZEL DUFFY, TRANSPORT CORRESPONDENT

Investor protection rule
proposals ‘too radical’

THE COMMONS Select Commit-

coramittee strongly

.BY JOHN MOOSE, CiTY CO!WESPONDB4T

tee on Tti^port has called on recommends that the Treasury THE Issuing Houses Association clearing banks, which

the Government to produce

Department of h-baft said

proposals for .engaged in the business of cor-

W *v V<v» vt MAUV MV IV ^VUW*|V a ' — ' : « 0 , ' “p “ . U«V MUoUiCOu Ml ITir-.

White Paper on rail policy Transport investigate develop- sweeping reforms m the regula- porate finance, a number of
following the findings of the a system to aUow the tions gOTerotng- fovestor protec- licensed dealers, and other
official SerpeU inquiry which is - Pe pertiu eat^ g^ t er fla^JA Ijty .. — 00 y*dical andv far ^batiks and- institutions which

underway. "" .

Department greater flexibility
in aSocating ca^h provision for

ranging.

The White Paper should con- the^ programme between One
tain a clarification of the yegg the, next

. .. * . carry on corpbrate finance busi-

^ ness and which have qualified

agreement that there was a lade for the stm™;* nt

of update regulation in some dwle? tempted

Government’s inteotions

The committee says that in

waSaeriwws^d wOTide .SUET", SSi e 11 "I f5S'!SfP?lSS:

VTU1UJ vuc iMjyrojo - airutTiiupd

the British Railways Board with rzf^rzfT
dear financial and operational KSJS-p

6argues that iMs is essential in

providing the scenario for the 'committee says there ' is no,
deaaonsr ^dence * to suggest . that

that need to be made.

• report of the. Transport unfairly treated
Oommittee into the roads pro- • n notes, hw

examined. • little progress interests, “and it is clear that - ' • r • ■ • ' - -t

appears to have been made in. thought needs to be given as to Regulation
developing a cany-over where the regulation is needed, ' . -■ « : - . ' •'

m eehanten which would permit .and whether the regulation that “ The - associatioir thinks' tiie 1
the amount underspent to be -te.. required should he sdf- area for new regulation is in •

used in the flowing year. : administered or statutory.” * investment managenrent,' which

In. its conditions, the It was responding to a review could involve estab lishment bv
Committee says there is no. of mvettor protection prepared .practitioners of some'sdf-reeu-
evidence * to suggest . that by-Rrof Jim Gower; adviser on bating body of bodies. "■■■■'

transport needs are • being- company law to the Department.' The association does hot: see -

unfairly treated - of Trade. His report was pre- .' tile- Cotincil . for the' Secnrities '

^f^fp^ tised to the flowing year.

contusions,

transport

- 1 °? „ • 2*® ' If notes, however; that ffie pared for the Trade Department Industry the CitvT :

LS’KLfSKSf- Presmt levd of investment^' . after . fiilure of a nS of oto*as '- 9 &S :

E 5 pendlture less ftan ftat needed in the investment companies last year, tonct as sutia
‘^ maices "FT l° n «er term to achieve- the .The
mendations with regard to objective of renewal moderni- ing. Houses Association includes- a S ter

soendme on riw» Trmftwvnv smrf coHnn ?r>A -r .w *ic . - . . “ ux Ior me COUilCU in repTC-

spending on the motorway and. gallon and extension of the all *46 members of the AcreoS “ *

trank roads programme, in the country’s transport infrastruc- tog Houses Committed

bght of possible underspending tore. It subsidiary. companies of Lond^ SSnple ro^o ^ ' r

i," 't --J , i Vi r 7 '.-!

**u

"1

rise

°- 5 %

- . 5 ’* 1 s*

:

: r * . a -:»rn.. bk.

*■ ;rj*«x\.

>!•£..

'.'■ ;, 'f

■ . ■:.:: =--r-^; 3

"- ■ iOr ;

■ ■ . • • - . L -KS t

^ :t ^;

:•

: ■.;■.:■?-■• ift
Uft?

*• &n.

Financial lJiica n „ j i;.i*iu , June iyy2

UK NEWS - LABOUR

lr:i ' js;

- £ « lQ .
Trcsi?

!

TrVa- J

n •:• !3 i';

ss. •?••-!:

. , : . r - •;: ;::-

n rule
ical

:

i- - : .

-. •:: -n

Action likely over Snowdown pit

BY JOHN LLOYD AMD SUE CAMERON

A SUM. CHANCE of averting
industrial disruption in Lhe coal
industry emerged yesterday as
it became clear that its manage,
ment unions had asked for the
issue of Snowdown Colliery
Kent, where production is due
to end, to be referred to
national disputes procedure.

. The issue has been referred
by the National Association of
Colliery Overmen. Deputies and
ShoMirers. supported by lhe
British Association of Colliery
Management.

Both are expected to argue
for retention of one of the three
faces now being worked, while
work proceeds -on driveages to
iresh coal reserves.

This would, cut the number of

Strike may
hit Tube
again today

By David Goorfhart, Labour Staff

THE LONDON Underground
today faces Its third consecu-
tive day of almost total shut-
down.

The system was brought to
a halt again yesterday follow-
ing the decision of the Asso-
ciated Society of Locomotive
Engineers and Firemen to
pull out 2,000 drivers on
“ indefinite ” strike over ser-
vice cuts, and the refusal of
the 14.000 National Union of
Railway-men members to
operate new timetables.

Only the Victoria and
Jubilee lines ran pear-normal
services.

<Thc NUR met London
Transport management yester-
day morning, but they only
discussed pay. No meeting
on the cuts in peak-hour
services' has yet been
arranged, but LT says it has
writteu to (he unions explain-
ing its position on the cuts.

The unions are still adam-
ant that the new timetables’
—which amount to a 4 per
cent cut In services — will not
be implemented. It is still
possible that the NUR will
join Aslef in an all-out strike
over the rats.

About 30 signal technicians
who were suspended last Fri-
day for refusing to prepare
the timetables have now -been
reinstated following -an NUR
threat to go for an all-out
strike. But both sides still ’
seemed a long way apart
yesterday.

workers from about 800 to 400.
rompared with lhe National
Coal Board's- plan to reduce
manning to 200 for driveage
work only.

■Mr Norman Siddall. the new
NCB chairman, said yesterday
that he hoped the reference
wnuld be supported by all min-
ing unions.

But the National Union of
Mmeworkers is unlikely to
participate in the procedure.

. Its executive threatened'
industrial action earlier this
month if the NCB did not with-
draw its plans for Snowdon.

It will raise the issue at ft
meeting with the board planned
for tomorrow, and decide on
industrial action at its pre-

conference executive on July 1
if the board does not back
down.

Mr Arthur Scargill. NUBS
president — not available for
comment yesterday — has
stressed that closure of any pit
except on grounds of complete
exhaustion will be vigorously
resisted.

Mr Siddall said that there
was no such thing as complete
exhaustion. “ I have never
peen a pit- without a piece of
coal left in iL" But opening of
new capacity should encourage
everyone in- the industry to
work together.

Mr Siddall warned of the
damage that a rail strike could
do to the coal industry.

He .said that during the last
rail strike the NCB lost sales
But Mr Siddall said that what
the board “feared most” was
, that customers would switch to
oil if. coal supplies were dis-
rupted by a rail strike.

The substitution of oil for
coal meant the NCB lost sales
it could : never recover, even
after a rail strike was over.
Disruption in supplies would
discourge potential customers
who were thinking of investing
in new equipment so that they
could burn coal instead of oil.

■ Mr Siddall. who said a “ large
■proportion ” of coal was trans-
ported by rail, added that NCB
exports would be hit if supplies
could not be taken to ports.

Steel union warns of
‘fight to finish’

against plant closures

BY BRIAN GROOM, LABOUR STAFF

Engineering workers replace top
official at TUC council

BY OUR LABOUR EDITOR

MB GAVIN LAIRD, general
secretary elect of the Amalga-
mated Union of Engineering
Workers, is to lose bis seat on
the TUC general council.

After a long and closely
argued debate, the AUEW*s
executive committee yesterday
decided to nominate as its three
representatives on the council:
Mr Terry Duffy, union presi-
dent, Mr Gerry Russell, execu-
tive council member for Mer-
seyside, and Mr Ed Scrivens,
executive council member for
Sheffield.

Mr Ken Cure, the member
for West Midlands, will be
nominated for the Labour
Party’s national executive com-
mittee. in place of Mr Russell.

The move is a - momentous
one for the union because it
effectively downgrades Mr
Laird, leaving Mr Duffy as un-
questioned leader of the union.

In recent years, lhe union
had been run. under the dual
leadership of Mr Duffy and Sir

' ‘.'3 s - .

AUEW chief Gavin Laird

John Boyd, the retiring general
secretary, who was a general
council member.

It also deprives the general
council of an official widely
acknowledged to be among the

most able and haTd working in
the union movement.

Mr Laird has served on a
number of public sector boards,
including that of the British
•National Oil Corporation and is
seen as a high flier- — a reputa-
tion which has attracted Its
share of suspicion.

However, executive members
argued that until Sir John's
period of office union tradi-
tion has been that the genera]
secretary was not a general
council member and that their
decision merely reverts to that
tradition.

But for Mr Laird Jt means
thai the general council seat he
held as executive council mem- j
her for Scotland must now be
relinquished. '

These changes bear little
implication of a swing in noli-
tical position, since all those
nominated for genera! council
are right-wingers, as is Mr
Laird. Mr Russell takes a
centrist position on most issues.

MR BILL SIRS, general-
secretary or the Iron and Steel
Trades Confederation, yester-
day threatened “ a fight to (he
finish " if British Steel
Corporation attempts to dose
another major plant.

He implied that the onion
would mount a national
strike.

The state-owned steelmaker
Ls renewing Us configuration
of plants because of a sharp
Tall in orders- A decision is
expected in a few weeks.

In addition. Mr Ian
MacGregor, BSC chairman.

has warned that the 100.000
workforce, may have to come
down to 7SJB00, - perhaps
within two years.

Mr Sirs told the ISTC con-
ference at Douglas, Isle of
Man. that if plants at Port
Talbot, IJankera, Ravens-
nraig, Scunthorpe and
Sheffield were under threat
“then the dye is cast We
must pick up the gauntlet"

He added: “We have got
to forget about severance pay
and be as tough as we were in
1930, and show wo win fight
(o the finish."

Two years ago. steelworkers
struck for 13 weeks — but over
pay, not redundancies. More
than 120.000 jobs have gone
since 1973, three-fifths In the
last two years, but without

major industrial action over
the rundown.

“ Ton have gone so far and
where a major plant Is con-
cerned you go no further. It
is a fight from now to the

finish if they want to try to
close any of those plants.
That's my stand. Don’t let me
down,” Mr Sirs said.

Some ISTC leaders believe
the Government would not
risk the “political snleide”
of sanctioning another major
steel closure. However, they
fear another round of mill
closures, privatisation of Jobs
and stringent productivity
measures and redundancies.

Several delegates pointed
out the difficulties of revers-
ing previous disunity over
closures. Workers in the
plants which remained open
have often been unwilling to
take action in support of
those faced with . closure.
Others have been willing to
take enhanced severance
payments and to go.

A fight on closures will
Involve support from miners
and railwaymen in the “triple
alliance.”

The conference later passed
a vote of “ no confidence " in
Mr MacGregor’s handling of
industrial relations, and voted
for a campaign to win back
jobs lost to contractors.

~ v.

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Matthew does. If he can’t read by then it’s

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Water workers Employers back
reject 7% offer Tebbit Bill

Print works action threatens Irish paper

THE IRISH Independent news-
paper In Dublin is faced with
the possibility of industrial
action unless the company
changes its mind over the
closure of a contract printing
subsidiary in England, accord-
ing to the National Graphical
Association-

- Milton Keynes Web Offset,

the largest contract printers In
the Buckinghamshire new town
has announced that it is to
close with the loss of more than
80 printing-jobs. Clients, which
include Baptist Times, Catholic
Herald, Soviet Weekly and
West Indian World, have been
asked to find other printers. -
The NGA has decided “to

resist the transfer of work at
this time" The newspapers and
magazines have been
threatened with “blacking" if
they move their work away.

■ The union believes the com-
pany’s order hooks are full
enough to make Milton Keynes
Web Offset viable and have
offered cost savings measures.

By Our Labour Staff

THE POSSIBILITY of industrial
action by 30.000 white-collar
staff in the water industry drew
closer last night after they
rejected a 7 per cent pay offer
from the National Water.
Council.

It is the second time they have
turned down the Council’s offer
which includes an extra day’s
holiday. They are claiming an
11.2 per cent rise, and a one
hour cut in their 37-hour week.

The main union involved, the
National and Local Government
Officers’ Association, said last
night that they would be con-
sulting with their branches on
what action to take to further
their claim.

DR JAMES MCFARLANE,
Director General of the En-
gineering Employers Federa-
tion, has backed the Govern-
ment’s intention to get the
Employment Bill on to the
statute book as quickly as
possible.

Despite the EEF’s criticism of
a number of the Bill’s clauses, .
Dr McFarlane — writing in the I
latest issue of EEF News — ■
welcomes the legislation “ which j
will promote greater union
responsibility

The Government resisted EEF
pressure to include a clause in
the Bill giving employers the
right to lay-off workers at one
week’s notice in the event of
industrial action by workers
elsewhere effecting production.

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14

UK NEWS -PARLIAMENT and POLITICS

.. Financial Times ^.2S82V;

Foot plea for arms sales
curb rejected by Thatcher

BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT

ON THE EVE of her departure
yesterday to the special United
Nations session on disarmament
Mrs Thatcher was the centre of
a furious row in the Commons
over the continued sale of
British arms to South American
countries and other Third
World nations.

There were noisy scenes when
she rejected repeated demands
from Mr Michael Foot, the
Labour leader, to end such
sales.

Shouting to make herself
heard above the noise from the
Labour benches, the Prime
Minister declared: “Weakness
has been the cause of as many
wars as military strength. Arms
races haven’t necessarily led to
wars.

“ What tends to lead to war
is rapid rearmament on the part
of a tyrant and unilateriol dis-
armament on the part of the
victim.”

Mrs Thatcher said that in her
speech to the UN in New York
today she would reaffirm the
importance that Britain
attached to maintaining inter-
national security. She would
also stress the Government's
determination to press ahead
with the search for a realistic
balance and for verifiable arms
control agreements.

“I will point out that the
purpose of disarmament is not
to undermine security hut to
enable it to take place at a
lower cost to all the nations
who at the moment hare very-
considerable armouries of
weapons.

“Unilateral disarmament
would open one up to attack
from strong nations. We must
have multilateral disarmament

and it must be verifiable."

Mr David Steel, the Liberal
leader, asked what her position
would be on conventional dis-
armament. He- pointed out that
on Monday the Defence Equip-
ment Exhibition had opened at
Aldershot and that on previous
occasions the' Argentines had
been good customers there.

To this Mrs Thatcher gave the
usual reply that successive
Governments had pursued the
policy of selling arms abroad
and that each order was viewed
on its merits.

“The result would be that
other nations would go to the
Soviet Union for their arms if
we pulled out of arms selling,”

Mr Frank AHaun (Lab Sal-
ford East) protested that it was
not right that, on the. day she
was leaving for the disarma-
ment session, nearly every
“fascist dictatorship” in Latin
America and the Middle East
and Far East should be attend-
ing the Aldershot exhibition
where the most sophisticated
weapons were on sale.

The Prime Minister 1 rejected
this and agreed with Mr
Winston Churchill (Con Stret-
ford) that unilateral disarma-
ment was the principal threat to
achieving a proper 1 arms control
agreement.

Mr Foot accused the Prime
Minister of giving an “ appall-
ing” reply to Mr AHaun. He
thought she did not seem to
mind how many deadly weapons
Britain sold to the Galtieris of
the future.

There was a roar of dis-
approval from the Labour
benches as . Mrs Thatcher
indignantly rejected this as
“ridiculous,” particularly as it

came from a man who was a
member of a Labour Govern-
ment which sold destroyers to
Argentina.

Urged on by his supporters,
Mr Foot demanded to know how
many fascist countries she was
willing to sell arms to.

Above the hubbub, Mrs
Thatcher repHed: “ WUl you not
plead guilty? It was your
Government that signed con-
' tracts to sell destroyers to the
Argentines. Those, are the very
destroyers which have, been
used against us now.”

Mr Foot suggested that she
should “look at the facts.” He
said it was the Labour Govern-
ment which had stopped the sale
of . arms to El Salvador, Chile,
South Africa and Argentina. It
was theft Conservative Govern-
ment which started to sell arms
to those countries again:

Mr Ken Warren (Con
Hastings) suggested that the
inquiry into the Falklands
operation should ensure that
evidence was obtained about
political decisions taken by the
last Labour Government which
affected the capability of
Britain's forces in the. campaign.

The Prime Minister assured
him that the evidence running
up to the invasion would deal
with decisions previously taken
on defence and military intel-
ligence. Tbe Government owed
this to the Foreign Office Mini-
sters who had resigned and to
Lhe staffs of the Foreign Office
and Ministry of Defence.

Emphasising her words care-
fully, she said it would be a
thorough inquiry as she was
quite sure that Mr Foot and the
Labour Party would not want
to hide anything.

Interest rates rise blamed for
increase in unemployment

BY OUR PARLIAMENTARY CORRESPONDENT

THE RISE in unemployment to
above 3m once again was
probably caused by the increase
in interest rates at the end of
last year, Mrs Thatcher told the
Commons yesterday.

Mr Michael Foot, Leader of
the Opposition, said the figures
announced yesterday were w the
most serious domestic news for
tbe nation.”

He said the country was back
to the worst trends of last year
and asked the Prime Minister
what prospects she saw for the
future.

But in a series of sharp
exchanges Mrs Thatcher argued
that all the indicators now
pointed to a sustained economic
recovery.

“ Cyclical indicators have 'for
a while suggested that there
would be a plateau in the first
half of 1982 and*' they also
implied a subsequent continua-
tion in the recovery," she said.

The figures were indeed un-
welcome, the Prime Minister
conceded, hut pointed oat they

contained a number of school-
leavers. Statistics showed that
a number of other European
countries had experienced an
unusually large increase on a
quarter by quarter basis.

“We think it was probably
due in this country to tbe in-
creased interest rates which
occurred primarily because of
the exchange rate at the end of
last autumn,” Mrs Thatcher
explained.

The forward indicators now
showed hope for better things
and for a continuation of eco-
nomic recovery.

But Mr Foot told hen “Part
of the reason- for these ex-
tremely serious unemployment
figures is the fall in industrial
production i the fall in house-'
building and the fall in other ■
forms of activity. ">•, . .

“Can you tell us what
assumptions the Government is
acting on. about how long un-
employment is going to con-
tinue at this rate?" Mr Foot

persisted.

The Prime Minister retorted
that the main Government
assumptions had already been
published. Figures showed that
economic activity -was above
the levels of last spring and
industrial and manufacturing
output was 2 per cent up from
the spring of 1981. .

“ The prospect is for resumed
and continued recovery and this
is supported by almost all the
Independent assumptions,” she
emphasised.

Answering other questions,
Mrs Thatcher condemned
strikes as unnecessary and
urged : unions to abandon
current industrial . action— -an,
implied calT "to foe tube
.workers and foe railwaymen.

.“I don’t believe people who
go on strike in this country
have legitimate cause,” she
said. “ I hope, even at this late
■hour,, these . ..contemplating
going on strike Will realise that
they are harming their fellow
citizens.”

Gow’s role
on Ulster
Bill

questioned

A BITTER row flared in the
Commons yesterday when the
names of the Prime Minister
and her “right-hand mqn”
Mr lan Gow (Con, East-
bourne) were linked with a
group of Conservative BSPs
determined to sabotage the
plans' of the Northern Ire-
land Secretary, Mr James
Prior, to introduce “rolling
devolution” in foe province.

A hard core of Teiy right-
wingers, some of whom were
called by foe shadow Ulster
Secretary, Mr Don Coneazmon,
the “Get Prior brigade” are
fiercely opposed % to Mr Prior’s
Bill and have tried to kill it
off by using delaying tactics.

Bat the Government was
imposing a guillotine on foe
proposals which means they
are certain to become law in
a few weeks.

Despite the decision to '
speed np foe Bill’s progress
the handful of Tories who
have fought tooth and nail
against it, dainrtng ft brings
closer the prospect of a
united Ireland, are common-
ly believed to enjoy more
than a measure of sympathy
from Mrs Thatcher.

Tbe row was brought into
foe open by Mr Concannon,
during foe debate on the
guillotine. He claimed that
Tory opponents to the North-
ern Ireland Bill Included a
group whose only interest was
“to pursue a pathetic per-
sonal battle ” against Mr
Prior.

Mr Concannon then re-
ferred to foe “ shadowy
crouching figure ” of Mrs
Thatcher’s Parliamentary Pri-
vate Secretary, Mr Ian Gow,
who he said had “ flitted
across and around ” the Tory
back benches during debates
on tbe BflL

“ Some might call him
* Supergrass \" Mr Concannon
said, “but bis role in this
Bill remains one of the great
unsolved mysteries.

“If there is any truth in
the stories circulating in the
corridors then he does indeed
have a lot to answer for.”

Mr Coneannon said he had
told Mr Gow of his intention
to raise foe issue but Mr Gaw
had a previous engagement
“ I’m sorry he is not here lo
answer.

“ It has been a nod here, a
wink there, a tug at foe elbow
and.a whisper in foe corridor,
but I think tbe committee
should be told on whose
insistence he has been doing
this.

Welcome for baby

Birth of foe royal bahy was
welcomed in. both Houses of
Parliament yesterday. Offering
formal congratulations Mrs
Tfcaleher said in foe Com-
mons: “ The whole - nation
shares :in the happiness of the
Prince ^and Princess of Wales,
foe Queen and Duke of Edin-
burgh and also -Queen
Elizabeth foe Qneen Mother.

Pressures build up on eve of
Labour’s Militants debate

over

BY ELINOR GOODMAN, POLITICAL CORRESPONDENT

LABOUR'S leader, Mr Michael
. Foot, was yesterday coming
under " strong and conflicting
pressures from the left and
right of his party on the eve
of today’s meeting o f th e
national executive committee
which - will discuss the report
Into the activities of Militant
Tendency, published last week.

- Mr Foot still looks set to get
foe necessary support for im-
plementing the inquiry's recom-
mendation that a register of
Labour Party groups should be
set itp' as a first step to. exclud-
ing Militant from fre-paily. But
some members of the executive
on. the “ soft left ” of foe party,
upon whom Mr Foot depends
for his majority on the execu-
tive, were expressing anxiety
yesterday about the. report’s
recommendations.

Mr Doug Hoyle and Miss Joan
Lestor, two of tbe Tribune
members on the executive who
usually support Mr Foot, went
to see him to express their
reservations about the proposal
to set up a register.

Meanwhile, fears that foe

report would trigger off another
round of bloody fighting in the
party were reinforced by bel-
ligerent warnings from for-left
groups like Socialist Organiser.

The Labour Co-ordinating
Committee, another left-wing
' pressure group, issued a state-
ment warning that if the right
was successful in its drive for
expulsions, “ they must ■ accept
1 the responsibility for dividing
: the party far more bitterly than
we have sees for many ( yeaxs/’ '
\ The committee did, however,

- back the idea of a register of
pressure groups. With . the
-proviso that it sh6uld not be
used to “control the opinions
and activities of pressure
.groups, by threatening to
remove them - from such a
register.”

In an attempt to bead off con-
flict, Mir Eric Heffer, chairman
. of foe party’s organisation com-
mittee, was collecting support
for a much milder response to
the Militant report. His motion
rejects the idea of a resister
altogether and proposes that all
Labour Party members should

’ have to agree to a-statement re-
affirming Labour's contentment
to parliamentary democracy.

The formula may: well get foe
suport of • some- - other left-
wingers on the executive J but^
Mr . Foot,' .whb’rdiscfcssed' -the’
statement, wifo /Mr' : Heffer
earlier . this week,' wiR-.mgue-
-that foe report inizst be^ imple-
mented in fan,:

border

IT WOULD W' “ inco3Keiv^ .”
for. Spaferto jc&L foe European
Comofflafity - Vfofle-- its ‘border
with Gibraltar was s^i Qoseii,
Frarak 1 PynS : fo£ / FdreffgrL'
Secreiaiyir told MPsryestqniey..
But-. S&y.mdaeT St.'.ctear rdnahg
Commons ’ essbange itf - VfiBat -.he
was ooBfideiu* the border would :

Although Hr- Foot: does .not eventually, be reopened;
appear to be r weakening, inhis-' 7 ; pym, ioafctaS cr^Mement

determination to implement foe - pa :foe EEC Foreign Mfesstfirs’
report- some right-wingers -.'felt * meeting'in '. -IiO®BtnbouM- , <m
foe need to : strengthen- his ■Monday.- saiff for: FerasJjforca,
resolve. A delegation from: foe' . foe Spaansh Foreign- Mfoistes,
right-wing ~ Manifesto-' r Group iiad told him that .IhejSpiBiisii

went to see Mm to urge Mux to
go further than the report,' and
take action now. to -expel the' 60
ort ; so leading ' 'members of
Militant • • <'.■■■ • V
They said that; -they thought
the evidence suteutterL to the

Government wished tff.postpehe
the -arrangements byi the
So-cafled 3 Lisfcon statement of
April 10 \vouM :' baTO ; hem .

... .

These- would tore cufrnbKftefl
• on Jane 25 wtth fo^opefctog of

J ■GHrosjtear’s border :wtth-9p^n.

view, the report made it quite -ppgpaj^ to go ahead .' and 1

clear that membero of Mihtant -regret, tbas^urfoec. post- »

should be disqualified - from u_ -»rT~,v^s.* ’

standing as official - Labour-

candidates.

ponement,” Mr Pym eaSd.
“Nevertheless-T agreed yath

Treasury acts on tax avoidance

BY IVOR OW0J

RESTRICTIONS on capital
allowances for machinery or
plant leased overseas, .going
beyond those already
announced, are being planned
by the Government to 00 outer
freshly discovered tax avoidance
schemes..

Mr Nicholas Ridley, Financial
Secretary to the Treasury,
announced last night that an
amendment to strengthen exist-
ing provisions would be intro-
duced when foe Finance . Bill
returned to the floor, of . foe
Commons for foe Report Stage
and that it would have effect
from yesterday (June 22).

He told the Commons stand-
ing committee considering the
Bill foat new clauses already
tabled by the Government —
some ' aspects of which foe
newly discovered tax avoidance
schemes seek to frustrate —
would prevent foe Revenue
losing tax running into
“bfi'Iions of pounds.”

V There was a general welcome
for a new danse, operative from
March IS 1982, reducing from
'25 per cent to 10 per-cent the
rate of annual writing down
. allowance for assets leased over-
seas.

Mr Ridley said -it now seemed
that in certain circumstances
. foe new 10 per cent would still
. be over generous.

Schemes were being ' de-
veloped to arrange terms for
foreign leases in such a way
that they continued £0 attract a
significant element of subsidy at
tbe expense of foe British tax-
payer.

Mr Ridley said the . schemes
operated through artificially
'“skewing ’’ the rental payments
profile and providing for leases
over an extended period with
the payments based an “rear-
end loading.”

He told foe committee these
devices were being openly dis-
cussed.

The Government - was 'Still
considering foe most effective

foe Spanish. Foreign. Mb^Etor
that we were both determined
to keep alive the process en-
visaged In foe IAfoon -agree-
ment,” be-addecL -
V Mr Pym :' was -pressetPhy
; Labour's Mr Stic Heffer tq say
whether, the postponement made . .
any difference -to^foe^G^ta- 1 "-
^mentis •'? atiStode. to .^Spain's -
countewneasures , to. take and - joining foe EE Q, 'I'.- • V '

the necessary changes to the . “The. ; Foreign -/ Minister
new danse would be introduced realises very weH^&at:. iT they
at foe Report Stage. : were to join,- fobn ItWpukL be
Mr Jack Straw, a Labour inconwavable todqsqwrfo the,
spokesman; on Treasury affairs, frontier still <dosed,’VMr;Tym
said leasing arrangements had ' said.' " * *. r ' : . V ; : 1 r ^ : - V*; '
been widely .used to reduce the. : He then reiterated foj^Tong-
tax liabilities of manufacturing standing assurance foat" .there
companies and a\ number . af-jrould.be no change inthe status 1
commercial institutions, notably - “of Gibraltar'" 'without foe ^fuE '
banks. . . agreement

Although corporation - ' tax - • -V.Sfr - > Frederic’. ^C,

stood at 52p in the pound it was . Torbay) said -that' wtfoc^f the ■
virtually impossible to find any - expectation by iMPa '-of, -an
company not only in foe mams- . parties - that the .; Gibraltar
factoring sector, but : in the blockade.. WouM tevimnsnated
commercial hanking sector, this year, it ’wdnW .liaye-bBen-
which paid anything like that very difficult to' ratification
rate of tax on its pre-tax of Spain’s entry; intb\Nato._-

profits.- .... .

. Mr Straw suggested, that foe
high profits enjoyed by ■ the
banks reflected, &n part their
success at employing- artificial
leasing aziangemehtsi ' r • ;

Lloyd’s 4

BY JOHN MOOSE, CITY CdRRESPONDQIT

It was not - an2y - M polrtrcaHy
inconceivable^--; but ; legally iin- .
passible far , a igbnntry .to join
the European Co^rimmify -mth
its borders dosed to ajmember
■state:”; • . .. . '

V t ■» "n •' •; ■

LINES between Lloyd’s insur-
ance brokers and foe under-
writing management companies
of insurance syndicates with tbe
market are a conflict of. interest
“which cannot be ignored,” a
House of Lords select commit-
tee was told yesterday.

Tbe House of Lords select
committee ■ has been reviewing
foe Lloyd’s Bill for improving
foe insurance market's self-
regulation. The Bill has met
with extensive opposition in foe
committee stages as a number
of insurance brokers and under-
writing interests have sought to
remove a clause calling for foe

fenced sale of brokers-’ share-
holding links with underwriting
managing agency companies —
foe groups whirii run under-
writing syndicates.

The Lords committee will an-
nounce whether foe Bill should
be changed next Monday.' v "

In his closing address: on be-
half of Lloyd's Mr Peter Boy-
dell, QC, said that, on analysis,
those opposing foe divestment
clause in foe Bill represented a .
small number. Less than a score
of 301 underwriting agents were
opposing the proposals, while
the broking firms petitioning
against foe measure totalled

-four - groups controlling - 19
Lloyd's brokersrou4 of^totMpf
268.'

But he padded foat tie did not
suppose ;foe-:Lpids committee
was going to arrive at a decision,
simply by counting heads: 7 Mr
BoydelL . argued ' .foat . Lloyd’s
membera . -had . accepted- wholly
the pfcStosphy ofj Loril Crpmer,
who had studied Lloytfs ; affairs
more - than 10. . years ago, and
Sir Henty Fisher, whose report
bn self -regulation at -lAoyd , s :
forms foe basis of the .'legisla-
tion, •'that' there is a conflict of
interest . '-- which A' cannot be

. ■■ /.;- c

-- ; -

Earii^: -^ytetarday’s 7

bearing .SSrfl^raitk La^fietd. QC»
making foe d-bsrog address for-
foe exponents of the Sfrestiarat
clause, said foat' those, pcactis-
ing consncBL ownerdd^' at.
Lloyd's rei^esented thfi n«»t
, energetic part ' of Layd^ , busi-
ness. ' - : • ' . . . -
; He arguetT that j wtien ' Sir
Heiuy Fisfier .stutfied tite ques-
tion of conflict s interest he bad
not realised'' how Hnrited foe
nature of foe problem of abuse
was. - . ..

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AfMww ----- : '

Exchange

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Dept. SD s Exchange Securi ties and Commodi ties Limited
46 High S treet, Warwick CV34 4AX.

Telephone Warwick (0926) 499008,492779,492683,492646(^497507

FT/2

COATBRIDGE AND AIRDRIE BY-ELECTION

Underdogs up against the

BY MARK MEREDITH, SCOTTISH CORRESPONDQfT

SANDY HENDERSON, foe
Alliance candidate in tomorrow’s
by-election at Coatbridge and
Airdrie, feels he has taken on a
one-party state.

The exasperating closing days
of his campaign to try to make
a depc in one of Scotland's
Labour bastions have left Mr
Henderson, 37-yearroId manager
of an industrial cleaning firm,
putting a brave face on things.

His campaign for the con-
stituency, east of Glasgow, had
its highpoints: encouraging
responses on doorsteps and
handshakes daring party walk-
abouts, but foe Alliance - was
badly demoralised by a
poU showing it would command
a mere 4 per cent of foe vote.

The NOP poll in the Observer
showed Labour with 74 per
cent, the Conservatives with 15
and the Scottish nationalists
with 7 per cent.

Mr Henderson had hoped to
run for Parliament closer to his
home in Livingstone down the
M3 towards Edinburgh but no
local candidate for Coatbridge
and Airdrie could be found. Mr
Henderson’s party, the liberals,
have not run in Coatbridge and
Airdrie since 1973 and local
people wanted to know why. His
wife 'is expecting the couple’s
first baby. And tbe Alliance’s
heart did not seem to be in the
fight during tbe final days.

‘It's like a one-party state
here, or perhaps an electioif for
a mayor in foe U.S,-'- Mr
Henderson mused over coffee
and toast provided in the home
of a local party stalwart
He is taking on . a Labour
machin e, even more taking, on
Mr Toin Clarke, the man who
runs Labour's, local machine
and Labour is making confident
predictions of victory tomorrow.
Mr Garke even speculated' that .
his three' opponents - might lose
their deposits.

The three underdogs have
admitted it has been difficult
to make an impression,
especially with' the media, when
competing against the royal
baby, the World Cup and the
Falklands war.

But they hope that local

The four contenders: Hqgo de Burgh, Conservative (top left), .
Sandy Henderson; Alliance (top right), Hon Wyllie^ SNP
(bottom left) and Tom Clarke, Labour (bottom right) -.

apathy, in what has turned out
to be a far from lively campaign,
may mean that a large propor-
tion of Labour voters will stay
at home, allowing more com-
mitted voters from the other
three party groups to make an
impact in the polling booths. -

Labour, has' held foe seat for
over- three decades and party,
influence has percolated right
through local politics. The. for-
mer MP, Mr Jimmy Dempsey,
whose death caused- foe by-
election, won foe seat with a
majority of 15,156 in foe general
election.

Unlike foe Glasgow Billhead

by-election where foe presehce;-
. of Mr Roy Jenkins, running for
. the 1 Alliance,, forced . national-
issues, on the voters, foe- issues"
in Coatbridge and Airdrie; have
been as local as foe campaign
■ has been lacklustre.

Unemployment of about 24
; per. cent in foe constituency,

. local plant closures, antf hous-
ing issues have predominated.
Even foe Falklands battle has
not Jnade 1 much impression. - -
. A System Three poH in yes- ,
terdayfs Glasgow. BeraH,. mir-
rored -considerable national
scepticism In Scotland about foe
.South 'Atlantic conflict; with 45 -

per cent thinking foat retaking
the islands was not worth the
price paid - in men : and equip-
ment -and 55 per cent approv-
ing foe action.

On local issues Tam Clarke
(“Tom’s our man, shout bis
election posters) is on home
ground. He can handle foe
'query about a cracked rink
among foe 80 per cent of dwell-
ings which are council bouses.
He seems to know everyone and
their granny.

Clarke is -a batohelor who
lives with his mother and sister
in Coatbridge. He has tried to
steer clear of foe left-right
battle within foe Labour Party.
“Mr Bend is not “ah' issue lii
the election*” he told reporters
yesterday.

■ - But on foe sidelines, at a fac-

■ toty where - M/ Neil- Kinnock
was addressing about 25 work.

-ers on behalf of Mr~Ciarke this
_ week. local union men ■ and
party representatives were wor-
. ried ahoiut foe party rift.

■ Mr Eric ' Tracey, foe local
Tass representative- at Lambeiv
ton Engineering and Mr "Will .

i MeGmro, .an AuEW man with
a. Labour badge on his over-
alls, thought the party's lack
of direction was damaging. , -

Labour- divisions has been
one of the -cards -played by Mr
Hugo, de Burgh for foe Con-
. seryatives. , : . ..J »'• ■

“Alien forces are tearing
the party apart,” he says. “If
David-- Gwen -was ready to rtry
his luck at gaining public
.attention foe the JUHance. tku>.
wrg test nighfs game between -
^cbtiand .- : and- Russia, : why':
wasn’t Labour trying Mr Benri,” :

Im askad/ / - -'..y

Mr.de Bufigjh, 32, 'a television
journalist who also worked -m
industrial, training, says. . his

canvass, returns show fik^party
will- lead. -But- fee- has declined -
to '> give the figures when
. pressed^:,-. _ ; .U

. The Conservatives have never
gained more foan 28fi ^per cebt ;
of-^foe - vote in - foe past- three
elections . and have • • --only ;
managed to take three of the
17 district council seats.' •
ConsMvatiye support caa
almost be- pinpointed to. areas..

of .private . hcraring . in Coat-
bridge. Party support is more
extensive in Akdrie.'

But Labour is not foe only
party worried . . by . _;intenol
strife. A left-right division in
the Scottish • National Party
could hurt Mr Ron Wyllie, foe'
SNP candidate. .

..- Mr -Wyllie, is a. rotund. 27-
year-old Jay preacher and an
outspoken member of foe
party’s 79 Group*. on foe left.
But he, too, bos ‘been daunpifo-
ing talk of party rifts -or specu-
lation of secessions from .foe
party following its decirida-to
proscribe all factions. '

The- Nationalists, despite’
their poor- poU showing' hare
demonstrated foat they can
bring out foeir supporters. ,

.. Yo ung ' unemployed, - party
stwporters have “camped .with
their sleeping Haigs' inside foe"
party headquarters in; a vsksait ;
industrial estate 7 bnflding:
Votere are invited to . drop by
foe committee rooms for. a
snack or. to watch foe World
Cup on foe telly.'; ;

.-. Mr Wylli e estimates he’ has
,8,000, supporters m tfee oonr
stituency. A low general forh-. -
out would a§ow this ^proup to
make a rize^e -inweaaUm on
the vtrte> ;

The- party, wo^fcers^^e per-
ips most in«>rrosive of^H foe-,
parties is action. -They-attaric a
housing estate ' in: 'VeH-co-
ordinated groHpf. Ron- Wyfhe
mans, a bullhorn while party .’
workers knock ^-on' doors and ;
stuff leaflets into^l^tter boxes:-.
-They give foe-i^resslan -df a

mass- natioBaUa^ assauit; >

: . Bo ? . . Natloh^ista' is? jnot^a
“Unung-issue in Scotiandfoese' -
days, afoough -the party ' : ! :
©apeetally tftrpnjfo .its jefl^ng,
-has been ftying to attiast more -
■support lhSKte-foE^trftfltj Tiinfcynjg | ! - -

' J. CANDIDATE?:; .

- Tfoonus' Qarike .

^ngo Wllliam de Barfo - ••

Sandy Henderson ■ fAIfouice
• Ron WyDie“ .. r ::..:^ x^p

(W0 ' 27-598; • j; -wa

Mre M/iJahnawiw

Financial Times Wednesday June 23 1982

15

GARDENS TODAY

Rose varieties of the TV era

BY ROBIN LANE FOX

FT COMMERCIAL LAW REPORTS

Assigned claim gives title to sue

THESE Are the weeks in
Which anyone can be happv
with his garden. -The first bed-
ding plants are' beginning to
Bower. There are pinks, orange
blossom and masses of pale, blue
campanulas. Above all. there
are roses, battered but back in
-Bower after, the worst winter of
their lives.

I am astonished, however, by
the fate of so many climbing
roses. Qf all the winter’s vic-
tims, these surprised me most.
They have made a : poor recovery
since the frost stopped. What
should you now do with those
hoge tangles of dead wood on
which a few. shoots are showing
flowers, while the leaves turn a
sickly yellow-green in the sun-
light?. '

There will be no more shoots,
I fear, from wood Which is
resolutely dead. The time is
.past for new growth and new
buds. All remaining debris
must now be cut out and, in
return, you should double the
food for old plants which you
want to rescue.

Some vety old ramblers may
no -longer deserve to be saved-
Toe -my amazement, I lost two
Paul’s Scarlet, ramblers which
were as high as my house, but
I suspect their age proved
critical.

They were over 30 years old
and 1 see no point in cutting
them back to their base and
waiting for a few final shoots.
Younger plants, however, still
have their big system of roots
and these should give them the
edge oyer young replacements.
To encourage them, I am dress-
ing them heavily with rotted
manure during their flowering
season. Most of our roses are
starved in a good year. After
such a bad one, they ought to be

fattened up to speed their
recovery.

Down- among the flower beds,
bush roses have had an easier
time. If anything, the winter
gave many of them : the hard-
pruning which they prefer. .

- . Here, too, I am looking for a
few replacements. Not all the
new varieties are had, but as a.
useful rule, I suggest that you
avoid the recent media roses
whose TV namesakes have re-
ceived poetic justice.' The new
rose Derek Nimmo hgs flowers
of a fierce salmon colour on
stiff stems, while poor old Sue
Lawley has landed one of the
ugliest roses of the century, a
poorly-formed semi - double-
blotch of cerise red fringed
with white.

For next year, there arc
rumours of a new sport to be
called David Coleman, an
abundant performer in hot
summers. With flowers of a
strident red, white and blue, a
leaf covered in penalty spots
and a habir-pf hanging its head
and reverting to type whenever
it is forced under pressure.
The problem, I gather, is that
it is proving unusually prone to
suckers.

Away from Ihe publicity,
there have been some promising
new breaks in the difficult field
of yellow. Yellow roses trace
back to a wild ancestry which
is less robust than other
colours. Now, I feel we are
starting to breed strong and
tolerably coloured flowers - in .
this charming range.

We have had two years to size
up Mattock's annual tea rose
called Tynwald and I think
that it has passed the tesL The
leaves are unusually dark and
the flowers are a fresh ivory-
white and cream-yellow. The

bushes are vigorous and do not
seem to collapse at the first sign
of mildew. .The shape of the
flower is very distinctive. It
is thickly-bunched, lying like
the circular pattern of petals in
a plausible sort of sham paper
rose. .

Tynwald has rounded flowers
not tapered buds and, despite
its quaint Manx name, it oiight
lo make a mark '. on civilised
borders where a strong yellow
would be out of place in a
block; for the middle row. --

For stronger colours, we
have long looked to the German
nurseries of the Kordes family
.which have dazzled us with
some brilliant roses over the
years. I suspect that their new
yellow called Simba, released
this year, may last the course.
I only know it from shows and
a healthy performance on
Mattock’s rose nurseries, but its
flower has the tapering centre
of the perfect hybrid lea and
its yellow petals are clear and
bright. They show no trace of
gold or orange, tinges which
spoil so many self-styled
yellows.

The recent Benson and
Hedges Gold from McGredy's
was launched with the usual
fanfare, but I ban it from any
colour schemes because its
petals are shaded with a muddy
orange-scarlet. Their miniature
rose, the new Benson and
Hedges Special, is a clearer gold
and may be useful if you like a
two-foot high bush with big
formal flowers.

At a better height, clear
lemon-yellow is rather scarce
and wc must go back to
Grandpa Dickson in the late
2960s. This is not the strongest
rose, but I wish the breeders
would come up with something

robust in this paler end of the
yellow range. .

What about the famous
Mountbatten? It is too early
for gardeners to judge, but it
looked good in the royal
wedding bouquet last year and
£ very much like its light, airy
leaves. It Is a tall rose, how-
ever, and I doubt if it will suit
all the. front gardens into
which its strong yellow flowers
will find their way.

Hontbatten, to my. nose, lacks
any scent Scent, I agree, is
never strong . In', these new
hybrids, but I- hope that
Mountbatten will not divert you
from Korda's earlier rose
called Korresia. This is
butter yellow, but It is a clear
colour and It smells quite
strongly for a modern rose
Bred in 1973, it entered the
market without much general
notice. Since then, it has
grown in popularity.

For a floribunda, its shape is
unusually neat. The flowers are
not large but they have the
well-rolled ' centre of a tea
variety. The bushes are hot
too tall . and they branch out
thickly. I hear nothing but
good of its health and rate it
above that old Allgold which
held the stage for years .in the
class' of floribunda yellows.

It is seldom that I see much
improvement in the modern
roses and I can only sympathise
with those of you who grow the
horrible squat pink variety
Angela Rippon.

Are the breeders getting
their own back on the TV stars
they love to hate? So far, the
yellows have had names of their
own and remain a. new group
worth taking seriously if yoo
mind about your border’s
colour.

BBC 1

6.40-7.55 am Open University
{Ultra High Frequency - only).
10-00. You and Me. 10.15-LU5
For Schools. Colleges. 1.00 pm
News After Noon. 1.304.45 Over
the Moon. 155 Wimbledon *82.
4.18 Regional News for England
(except London). 4.20 Play
School. 4.45 Joey and Redhawk.
5.05 Newsround. -5.10 Wildtrack.

. . 5-40- News. '

6.00 Regional News Magazines.

6.25 Nationwide.

6.55 Comedy ' ' Classic; . The
Good Life, ' ■' starring
Richard .Briers, Felicity
Kendal and Penelope
Keith.

725 Wednesday Film: “The
Pistolero of Red River,"
starring Glenn Ford,
Angie,, • -DicJtinsqn;-. and
Chad Everett. - ..

9.00 News.

925 Chicago Story:. .'The
bright lights and busy
streets of Chicago. This-
film in rhe series is
•entitled “Dutton’s Law."
1025 Taxi: America's comedy
senes.’ -

10.58 News Headlines.

11.00 World Cup Report High-;
lights of three matches—
Brazil v New Zealand.
Argentina v El Salvador
and Italy v Cameroon.

TELEVISION

Tonight’s Choice

Tonight's World Cup match (ITV 720) could be one for the
record books when favourites Brazil take on rankest outsider New
Zealand — keep an abacus bandy. It might be best to stay with
the commercial channel which, in the London area at least, has
an early film by cult producer John Carpenter Assault on
Precinct 13. Its success In the UK, on a budget of £100,000,
ensured the go ahead for the first Carpenter smash, Halloween.

Earlier In the day. also on ITV, and also in London, is Around
London, which is taking a look at the capital's institutions, and
this week alights, on the City. You will probably not learn much
hut there is a chance you will be in the background.

The best that BBC can offer is another in the Man Alive
debate series on BBC 2, this time on the role of the police. All
the old prejudices will be aired, but democracy will be seen to
have been done. Later the Stravinsky season ends at 920 with
a repeat of the ballet based on bis “Symphony of Psalms.”

On Radio 4 there is an encouraging anniversary— it Is 10 years
since the last major air crash in the UK. The programme looks
at the lessons learned from the BEA Trident disaster at Heathrow
in 1972. '.

ANTONY THGRNCROFT

BBC 2

6.40-7.55 am Open University.
10.00 Gharbar. .

1020-1025 Play School.
1220-120 pm Open University.
2.01 For Schools, Colleges.
3.00 Wimbledon *82. •

8.10 News Summary.

8.15 The Man -Alive debate.
9.00 Butterflies by Carla Lane.
920 Stravinsky and the
Dance.

10.00 Wimbledon: Match of the
Day.

10.45-1125 Newroight

LONDON

920 am Schools Programmes.
1124 Dick Tracy Cartoon. 12.00
Windfalls. 12.10 pm Rainbow.
1220 Tbe Communicators. 1.00
News, plus FT Index. 120
Thames News with Robin
Houston. 120 Look Who's Talk-
ing. 2.00 After Noon Pius
Revisited: Mavis Nicholson

presents a compilation of some
of the funniest interviews seen
on After Noon Plus over the
past year. 2.45 The Six Million
Dollar Man.' 3.45 Three Little
Words. 4J5 Porky Pig. 420
Storybook International. 4.45
Andy Robson. 5.15 Around
London: “ The City," with
reporter Denis Tuohy.

5.45 News.

6.00 Thames News.

,. 625 Help!

625 Cro&roads-

7.00 Coronation Street

720 World Cup -82: Brazil
v New Zealand, from
the Benito ViUam&rin
Stadium, Seville, intro-
duce by Brian Moore.
Commentator . is John
Helm, with Denis Law.

1020 News-

11.00 “ Assault on Precinct 13, 1
starring Austin Stoker,

12.40 am Close: Sit up and
Listen with Lord Beloff.
t Indicates programme in
black and while

All IBA Regions as .London
except at tbe following times: —

ANGLIA .

120 pm Anglia NawS- Z45 The
Un of Sum mar. ' 5,15 Jangles.. 5 JJO
About Anglia. 12.40 am Personal

Vlaw.

BORDER

1.20 pm Border News; 2.45 Charlie's
Angels. 5.1S Survival. 6.00 look-
around Wednesday. 12-40 am Border
News Summary.

central

1.20 pm Central Nowa. 2.45 The
Body Human. 5.15 Diff'rant Strokes.
£00 Crossroads. 6.25 Contra! News.

CHANNEL

120 ‘ pm Channel - Lunchtime News.
Whet’s On Where. Z4S The. Last of
Summer. 5.20 Crossroads. 5.00
Chinns! Report. 6 JO Bailey’s „ Bird.
10.58 Channel Late News. 11.00 TV

Movie: " Death at Love House.”
12.50 m News and Weather in
French; followed by Epilogue.

GRAMPIAN

5.25 am First Thing. 1.2D pm North
News.- 2.45 Trapper John. 5.75
Jangles. 6.00 North Tonight. 12-40
ant North. Headlines. 1

GRANADA

1154 am Weuoq Wettoo. 120 pm
Granada Reports. 2-00 Rerlpment
Report. 230 Putting on the Style.
Zj9S Play It Again. 3.15 Arthur C.
Clarke’s Mysterious World. 5.15
Welcome Sack K otter. 8.00 This Is
Your Right. 6.05 Crossroads. 6.30
Grenada Reports. .

HTV

1.20 pm HTV News. 2.45 Fantasy
Island. 4.15 Ask Oscarl 5.16
Stingray. 6.00 HTV News. 10.58 HTV
Hews. ^

HTV Cyrmu/Walee— As HTV Wen
except: ' 12.00-12.10 pm Ty Bach Twt.

4.15 Hara’a Boomer. 445-5.15 Llygad
Barcud. 6.00 Y Dydd. 6.15-6.35
Report Wales.

SCOTTISH

12-30 pm Survival- ‘120 Scottish
Newa. 2-4S Lova Boat. 5.10 Traveller’*
Tales. 5.20 Crossroads. 6.00. Scotland
Today, followed by Action Line. 6.30
What'e Your Problem ? 12-40 am Law
Cell.

TSW

1.20 pm TSW News Headlines. 2.45
The Last ol Summer. 5.15 Gus Honey-
bun’s Magic Birthdays. 530 Cross,
roads. 6.00 Today South .West. £-30
Tela Views. 6.40 Sport sweat, 11.00
TSW Lata News. 11.02 pm “Death
Al Love House.” starring Roben
Wegner. Kate Jackson. John Carradins
and Dorothy Lamour. 12.06 am Post-
script.’ - 12.55 South Watt Weather
and Shipping Forecast.

TVS

1.20 pm. TVS Nsws. 2^5 Trapper

John. 5.15 Watch This Space . • .
Good News of the Waak. 530 Coast
to Coast. 12.40' am Company.

TYNE TEES

9.20 *m The Good Word. 9.25
North East News. 1.20 pm North East
News. 1.25 Where The Jobe Are.
2-45 The Love Boat, 5.15 Private
Benjamin. - 6.00 North East News.
6.02 Crossroads. <L2S Northern Life.
12.40 am Islam.

ULSTER

I. 20 pm Lunchtime- 2-45 Young
Ramsay. 4.13 Ulster Newt. 6.15
Gembit, 6.00 Good Evening Ulster.
12.40 am News at Bedtime.

YORKSHIRE -

II. 55 am The Undersea Adventures
ef Captain Nemo. 1JO pm Calendar
Hews. 2.45 Chartie’i Angels. 5.16
The Lincolna|>ire Show. 6 JJO Calendar
(Em lay Moor and Belmont editions).

(S) Stereo Broadcast (when broadcast
on VHF)

RADIO 1

5.00 am As Radio 2 (S). 7.00 Mika
Read- -9.00 Simon Bata 9. 11.30 Dave
Lea Travis. 2.00 .pm Stove Wright.
4.30 Richard Skinner. 7.00 Radio l
Mailbag. 8 DO David Jansen. 10.00-
12-00 Mark Ellen (S).

• VHF Radios 1 and 2--5.00 am With
Radio 2. 2.00 pm Don Durbridge (S).

Colin Barry (S). 5.45 News:
Sport- 6.00 John Dunn (S). .7.00
With Radio: 2. 1WM With Radio 1.
12.00-5.00 am With Radio 2.

RADIO

Desk. 10.00 Tom Meimerd tells Local
Talas. 10.15 The Wuraels. 10.30
Hubert Gragg say> Thanks For The
Memory. 11.00 Brien Matthew with
Round Midnight (stereo from mid-
night). 1.00 am Encore (S). 2.00-

5.00 You and the Night end the Music
(S).

RADIO 3

RADIO 2

m Ray Moore (S). 7,30 Terry
[S). 10.00 Jimmy Young (S).
oria Hunmford (5) . 2.00 pm

on '82. 7.00 John Dunn (S).
n Dali with Dane? Band Days,
ong Your Souvenirs l5|- a ‘2=
Jiacksfiald (S). .*■» SP 0 "*

6.55 am Weather. ' 7.00 News. 7.0B
Your Midweek Choice. (S). 8.00 Nawa.
8 0S Your Midweek Choice (con-
tinued). 9.00 News. 9.05 This Week’s
Composer; Purcell (S). 10.00 Nash

Ensemble • (S). 11.00 BBC Scottish

Symphony Orchestra (S). 12.05 pm

Rudolf Fitlusny p<anp recital (S).
1.00 ' News. 1.05 Concert Hall (S).
2.00 Music Weekly (S). 2.50 Albert.

Coates. 4.00 Choral Evensong (S).
4.55 Newt. 5.00- Mainly for Pleasure
(S). 6.30 Plziatti: Requiem Mas* (S).
7.00' Throwaway Theatre: Critical
assessment of Italian playwright- and
performer Dario Fo (S). 7.46 Russian
Piano Music: Part 1 — Tchaikovsky,
Prokofiev. 8.35 Six Continents. 8.55
Russian Plano Music: Port 2 — Mussorg-
sky. Balakirev (S). 10.05 Two Gallants
(story by James Joyca). 10.25 BBC
Scottish Symphony Orchestra (S).
11.15*11.18 News.

. RADIO 4

“ r ' % ‘

6.00 am News Briefing'. - 6.10 Farm-
ing ‘ Today: 6.25 . Shipping Forecast.
6 JO Today. 8.33 Yesterday In Parlia-
ment. 0.57 Weather, travel. 9.00
News, 9.05 Midweeks Henry Kelly (S).

10.00 News. 10.02 Gardeners’ Question
Tima. 10.30 Daily Service. 10.45
Morning Story, 11.00 News. 11.03
Baker’s Dozen. 12-00 News. 12.02. pm
You and Yours. 12.27 Maximum
Credible Accident (S). 1235 Weather,
travel, programme news. 1.00 The
World at. One. 1.40 Tha Archers. 1.55
Shipping Forecast. 2.00 News. 2.02
Woman's Hour. 3.00 News. 3.02
Afternoon Theatre. 3.47 Time For
Versa. 4.00 News. 4.02 The Place
For Me. 4.10 File on 4. 4,40 Story
Time. 5.00 PM: News Magazine. 5.50
Shipping Forecast- 5-55 Weather, pro-
gramme news. 8.00 Nawa, including
Financial Report. 6 JO My Music (S).

7.00 News. 7.05 The Archer*. 7.20
Radio 4 Afloat. 7.45 Animal Language
(S). 8.15 Antony Hopkina. (S). 8.45
A ire rash; A look at the work of learn-
ing from an air crash. 9.30 Kaleido-
scope. - 9.58 Weather. 10.00 The
World Tonight. 10J0 Men ol Property
(S). run A Book at Bedtime. 11.15
The Financial World Tonight. Iljffl
Today In Parliament. 12.00 News.

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GUS PROPERTY
House of Lords (Lord Diplocfc,
Where a court assesses loss
and damage lo properly in-
curred before assignment ;ot
a claim for such loss, it may
base its assessment on the
cost of repairs, or the depre-
ciation in value of the
property caused by . the
damage: and if depreciation is ■ •
the basis of assessment, any
artificial book value is irrele-
vant and the loss is the;
difference between Che tree
value of the property in its
damaged condition and the .
price it would have fetched
undamaged.

. Tbe House of Lords so held
when allowing an appeal by GUS
Property Management Ltd
(GUS) from an interlocutor
dated March 12 1981 by which
the first. Division of the Court of
Session (Scotland) held thai it
had bo title to sue in its action
against Linlcwoods Mail Order
Stores Ltd and three other
parties.

■Hr * *

LORD KEITH said that Rest
Property Co. Ltd (Rest) owned
a building in Queen Street, Glas-
gow. Littlewoods owned an
adjacent property in Miller
Street?

Littlewoods arranged to have
pertain building operations
carried out on its property.
These involved the -employment
of a firm of structural engineers
and of main contractors who in
turn engaged sub-contractors for
specialised piling work. That
piling work, so it wag alleged,
was carried out negligently, with
the result that serious structural
damage was caused to Rest's
building.

An action was raised in July
1978 claiming damages from
Littlewoods, the structural
engineers, the main contractors,
and the sub-contractors, jointly
and severally, as being in vary-
ing ways responsible for the
damage to the building.

MANAGEMENT LTD v LITTLEWOODS MAIL ORDER STORES LTD AND OTHERS

Lord Fraser of Tullybelton, Lord Keith of Kinkei, Lord Roskill and Lord Brigbumm):. June -17 1982

- In April 1972. Rest's parent
company adopted a policy under
which investment properties in
its group of companies were to
be transferred to a newly
created wholly-owned subsidiary,
* GUS.

expended that money. The ex-
penditure was that of GUS and
not of Rest. The alternative
claim for diminution of the value
of the building was regarded as
irrelevant, on the ground .that
the cost of repairs represented

The building in Queen Street the proper measure of damage
was conveyed by Rest to GUS W the building, being all that
on March 14 1973 for £259,618. was necessary

to.

achieve

That -was the figure of value at restoration to its. original state.

It was also held that the con-
veyance of the building had
divested Rest of any title to pur-
sue a claim, because GUS’s aver-
ments showed that the book

iwhich the building stood in,
Rest's books. On June 15 1976,
' Rest assigned to GUS all claims
arising out of the Littlewoods
building operations.

GUS pleaded its claim on an value price which Rest received
alternative basis. The first was for the building would have
that the value of the building been exactly tbe same even if
in its damaged state at tbe time the building bad not been dam-
aged. So Rest suffered no loss.

Where specific property was
damaged by delict it was a
general rule that the owner did
not, by parting with The property.

of the Littlewoods operations
was £300,000, whereas its value
in an undamaged state at the
same time would have been
£650.000. Tbe claim on that

basis would be for the difference ^ Ue and interest to pursue
t * ie Wo sums * Iiame * y a claim for damages against the

£350.000.

wrongdoer. Where the property

The second basis was that of was disposed of for the price It

the cost of repairing the damage
lo the building. In that con-

was worth in its damaged condi-
tion, the best measure of the loss

right of action.

It remained to consider
whether the First Division erred
in regarding GUS’s averments of
loss as irrelevant GUS was
suing to recover, not its own
loss but 'the Joss suffered by
Rest. It was -undeniable, on the
averments, that Rest suffered
some loss through the Little-
woods’ operations. Its building
was seriously damaged.

How was the loss to be
measured in money terms ? One
approach was to consider the
extent to which the value of the
building had depreciated as a
result of the damage. Another
was to assess the cost of repairs
necessary lo restore it to the
condition it was in before the
operations.

The averments of GUS about
its own expenditure on repairs
were not open to any objection
insofar as they were averments
of fact. They had relevance as
indicating the scale of expendi-
ture which it was likely Rest
would have incurred had it con-
tinued to own the building.

The facts averred might thus

nection GUS averred that, after was likely to be the difference
the conveyance of the property between that price and what It
but before tbe assignment of would have fetched undamaged, have evidential value for the
Rest’s claim. GUS had expended However, an owner might dis- Impose of arriving at an esti

work and professional fees.

than by such a transaction. He

The main contractor and sub* might, for. example, alienate it

coo tractor pleaded no title to
sue. The Lord Ordinary re-

gratuitous ly.
suggest that

It was absurd to
in such cirrum-

about £55,450 on reinstatement pose Of the property "otherwise mate of the loss suffered by Rest

.. , — «. — ; It was that loss, which GUS, as

assignees of the claim, was seek-
ing to recover.

Tbe appeal should be allowed.
Lord Diplock, Lord Fraser.
Lord Roskill and Lord
Brightman agreed.

For G VS Property Management :
J. Murray QC and N. Af. p. Mor-
tar the purpose of measuring the JFeLii. TE?

loss suffered by Rest, and was in- t° r lJ ^ chen and Stevens > Fdm-

pelled tbe pleas,, but they were stances the claim for damages
sustained by the First Division, would disappear.

In the present case, the price
for which Rest conveyed the
damaged building was irrelevant

GUS appealed.

The basic question was
whether GUS was really seeking
to pursue a claim which Rest
-conld have pursued at the date
of the assignment The only
loss GUS could claim by virtue
of .the assignment was loss That figure was fixed
suffered by Rest for which Rest
could have sought reparation.

The First Division took the
view that Rest, at the date of
the assignment, did not have a
valid claim to recover the sums
spent on repairing the building,
because Rest , itself had not

capable of founding an argument
that Rest suffered no loss at all-
in an

burgh ).

For Littlewoods and the other
respondent*; J. A. D Hope QC
and G. N. H. Emslie (Wilkinson.

Internal group transaction, for L • 7 -
accounting purposes only, with- timbers and SUiddon. agents for

out any reference to the true

value of the building. The trans-

action could not lead to the infer- S^™ , J\ I7npw>n and Martmck ’
ence that Rest suffered no loss. Edinburgh >.

Scott Moncrieff and Trail. Edin-
burgh Dorman, Jeffrey and Co.,

Rest’s transfer of the property,
therefore, did not destroy its

By Rachel Davies
Barrister

RACING

BY DOMINIC WIGAN

UNLESS THE rains descend on
Salisbury’s downland course
today with the devastating
force which yesterday led to the
abandonment of waterlogged
Pontefract, a bumper Bibury
Cup card should be enjoyed by
many.

Last year’s Bibury pro-
gramme proved something of an
endurance test, with three
divisions of the Shrewton
Maiden Stakes and two for the
Pembroke Stakes.

Just about the only man on
the course who can have appre-

ciated the I9S1 marathon was
Willie Carson, who ' must be
looking forward to minor pick-
ings. Responsible for winners
in Tulsa Flyer (7-1), Annesley
(100-30) and Sally Rose (9-4)
last year, Carson has li kely
looking mounts on John Dun-
lop’s pair, Monetarist and
Aaborun.

The first, a previously un-
rated colt by Monsigneur out of
the winning Sparkler mare.
Elated, has been moving suffi-
ciently well on Arundel’s Hill-
side gallops to suggest that he
has a great chance of upsetting
another fellow Sussex raider.
The Quiet Don in the opening
division of the Shrewton
Maiden Stakes.

Aaborun, among the runners

for Salisbury’s oldest race, the
Bibury Cup an hour later, has
( taken some time to show any
' worthwhile form. However,
judged on his recent fourth-
placed effort in Newbury's
Childrey Stakes over 13 fur-
longs his day cannot be far
away.

Brought with a steady run in
the final three • furlongs
Aaborun only failed narrowly
against Brevet, Deroulede and
Wort Mate for fhe minor plac-
ings. He is reckoned the chief
threat to Tidworth Tattoo, who
has suddenly found the form
which encouraged David
Elsworth to run him in the
Derby.

Whatever the fate of The
Quiet Don, Guy Harwood

(responsible for Lively Rhythm
and Taher a year ago) should
again have another profitable
afternoon. It will be a hitter
disappointment to ‘ him if his
maiden. The Minstrel filly
Quest, cannot get off the mark'
in the first division of the Pem-
broke Stakes.

SALISBURY

2.15 — Monetarist*

2.45 — Grand March

3.15 — Tidworth Tattoo**

3.45 — Mysotis

4.15— Quest**?

4.45— Castle Guard

5.15 — Haughtiness

RIPON

3.00 — Jubilee Saint

4.00 — Longtoft

in honour

A unique collection of
Royal Baby stamps has
just been announced by six
British Commonwealth
countries- Nevis, Tuvalu,

Kiribati, St. Kitts, St Vincent and
for the first time ever on stamps— the
romantic island of Mustique.

As time prevented new stamps to
be designed, a very limited number of
unsold stamps of the recent 21st Birthdaj
— an Issue which was available in tbe special _
Gutter Pair format— were overprinted “ROYAL"
BABY.”

Stamp collectors wfll be well aware that this earlier issue
featured Gutter Pairs —one of the latest and most popular *
trends in stamp collecting.

Now, Stanley Gibbons, '*the greatest name in stamps.” are
proud to announce that they have reserved a very limited
number of complete collections of these special Gutter Pairs
overprinted “ROYAL BABY” on Official First Day Covers
from all six countries.

SIGNED COVERS -something really special!

In each collection, covers containing the top value
stamps are in&viduaUys&gjoed by one of the artists—

Deiek Shults or John Cooter— 30 signed covers in
aU!

WORLDWIDE APPEAL

Demand for these Covers iwillbe
worldwide as collectors will quickly
realise the double scarcity of

having “ROYAL BABYT .

overprinted stamps — and, in the
scarce gutter pair format.

STANLEY GIBBONS PROMOTIONS

Church Hatch, Ringwood, Hants. BH241DF

TeLRingwood (04254) 78776

aiwiiwwr*™

■ Vvx "

I t 1 “ luiuici uuui iiMim n wm

without obligation. m\ M

With supplies so very limited, we folly expect lobes
quickly over-subscribed, so only early orders are '
tikelyto secure the complete collections of all 15
covers from the six different countries— a truly
magnificent series of 90 covers in total— each a
miniature (fork of art.

SEND NO MONEY

To avoid any single major outlay the
collection wil be spread over 12months at
the fixed monthly rate of only £16.50 per
month. (Total cost £198}.

STANLEY GIBBONS
PROMOTIONS

Church Hatch, Hingwood,
Hants. BH24 IDF

□ Please reserve (without obligation) \

collection^) of ROYAL BABY covers. I prefer to *
spread the cost over 12 equal month payments of |
£16.50. |

□ Please reserve (without obligation)^

collection^) of ROYAL BABY covers. I would
like one invoice to be sent to me, when available,
for £198 complete.

□ I would like to receive further information
without obligation.

L6

jlnanciai Time§-^V«liiesaay

THE MANAGEMENT PAGE

EDITED BY CHRISTOPHER LORENZ

Why three men bought a bank

Duncan Campbell-Smith looks at Close Brothers three years after its. directors bought it

'*••1

«■ ■%. 1

CONSIDERING HOW many
people In the modern City of
London spend all day looking
at the results of private enter-
prise, it is a mystery that so
few take the plunge themselves
and strike out into the financial
sector with small ventures of
their own.

Or so think three men, at
least, who did just that in the
1970s. They had seen enough
of the merchant banker's world
to marvel at Hie huge fees
changing hands and the brefad-
and butter nature of so much
of the work involved.

The three men reacted first
moving away from select
-and cosy jobs into a tiny
survivor of the secondary bank-
ing crisis. They ran it as a
private venture for five years
— then consummated its
■recovery with a management
buy-out in 1979 which gave
them 40 per cent ownership.

Three years later. Close
Brothers is still quietly thriv-
ing on a diet of deposits and
commission fees from small
business clients. By identifying
rheir market and sticking care-
fully to . it. three unusual
entrepreneurs have successfully
planted a small-scale venture
in the City's own back yard.

Rod Kent -is the managing
.-director of the bank. He left
J. Henry Schroder Wagg in
1973 to go to the INSEAD
business school, in Geneva,
where he met a director of

Close Brothers. It had just
been acquired by the Consoli-
dated' Gold Fields Group and
Kent was persuaded soon after-
wards to' join what he now
describes as “a small but
totally solvent bank owned by
someone very big.;’

At the time, though, the bank
was in a mess and the new
recruit found it heavy going to
sort out a £2m loan book, at
least half of which posed
interest and Repayment prob-
lems.

At 27. Kent had a challenging
job. There were few other
executives around and he
worked closely with Michael
Morley, the bank's chairman
and for a short time its owner,
before the sale to ConsGold.
Banking, he still avows, is “a
lot of common sense and a lot
of law so they hired a
lawyer.

Peter Stone had' been at
school with Kent In the 1960s.
A curious career divided be-
tween City solicitors Slaughter
and May and the basket of
Britain's fourtb registered pro-
fessional hot air balloon sug-
gested that an unconventional
job offer might appeal — and It
did.

The new team tackled the
problems of a bank with too
many clerical staff, too big an
office building, too loose an
asset structure and too little
idea about its management aims
and position in the market-

place: not so much a combina-
tion- restricted to small
businesses as one common to
most businesses uncertain of
their optimum size.

Close Brothers was pruned,
back sharply. Nevertheless, by
1976 a third man was' needed to
add accounting skills- to the'
board. . »/

Morley asked a friend at
Barings how they went about re-
cruiting executives. He took his
advice, put a small advertise-
ment in a newspaper and Close
took on the first of 60

applicants— an unhappy man

from Barings. .

More fun

Peter Winkworth ‘4 now 33
and trained with Peat,T Marwick
Mitchell, the - accountants.
Merchant banking looked to him
like " less work and more
money ” than toiling on the
junior, staff of one of. the Big
Eight accounting firms. This
led him -into a three year stint
in Barings' corporate finance
department. .

He did find -it less work — but
less satisfying, too. Within days
of joining Close Brothers in
1976. he had direct personal
responsibility for the ' conduct
of a contested takeover. Being
the big fish in a little pond, he
found, made banking rather
more fun.

As Its three-man team grew
in confidence, Close regain^i its
poise. In 197$— the. centenaiy
of the bank, appropriately—
pre-tax profits of £180*000 were
achieved . and -the balance-sheet
“hacT £flT3n4.'~of ^deposits. The
cbairman -talked a Utile grandly
in Mfre- firniuaT ' "report :-ab®ut-
Ciose’s kmg history but -stated
its new t&k.-iiildly 1 enough:
“We are seeking *.tft .prove to a
sceptical world thaf '-a Vsn^ii
merchant bank has a definite
and profitable role to pla& ; J "

' Vl, .V,

ConsGold also had a definite
role to play as the bank's parent
and -fulfilled it- perfectly^ pays
Kent. ConsGold group 'publicity
referred : usefully : to - its'
merchant banking arm, which
beefed up "Close's official, image.
On -the other hand, -the' bank
was not forced into' any overall
group strategy;

in several respects, the limits
ou ConsCoM's watching .brief
weife. more .important than, the
.help ifgave; ‘Close was allowed
to avoid btisjacss relying on the
CortsGoId connection. It did
□of become treasurer to the
group.?.. /■

1 «

Above all, though,- ConsGold
was prepared to accept the risk
that observers would see. its
bank as the plaything of three
whizz-kids manquf. This risked
an embarrassing exposure if
things went wrong, but they did
not

By 1978 they were going well
enough, an-, fact, for the three
young directors to see another
future, for themselves as share-
holders as . well as executives.
They embarked an a manage-
ment buy-out

Each ■ of - them borrowed
£25.000 from the Midland Bank
— giving second- charges : on
their houses m the process—
and took a IQ per cent stake In
a netf - equity structure
capitalised at £250,000.

To'day^ a series of acquisi-
tions, management changes and
.one further-' capital reorganisa-
tion >has'_ transformed Close
. Brothers* .outward form. It
owns a factoring subsidiary,
Century- Factors, based largely
in the West Country. It has a
money market venture, Spry
Finance, owned jointly with a
Bristol stockbroker. And the
directors have some useful
fellow shareholders, including
three! trusts’ in the F and C
Group.

' The management philosophy,
however, is unchanged.

With a handful of staff and
one secretary between Them,
the directors hardly rieefa to
point out that this philosophy
precludes chasing after the
whole range of banking ser-
vices. If they do make the
point a little too readily, it is
an excusable part of their
enthusiasm for the central
message. . '

■ t *

mi '

t f if ' 'MWM-v

i- V .

:

■ .w. . : . .

. : 04

Jfe • fa?*

’ ' ;• ' ■ J ‘ -7 rworHumtOritr : . .

Specialising m a profitable wav (I to r): Peter. Winkworth, Roderick tfent and Peter Stone ■ V 7

- On this; they like to quote mergers or acquisition woik it hMr of the bank? .t*^4lrruKt

Edmund Safra, the succ es sful anything, in fact, with a sen* everyjclient oaiLbe trace^'how-'-
chairman of the Trade Develop- sible appeal, and a reasonable- ever.

ment Bank. “ He says if there fee attached.- And they are ^tajcts . going. -bagt W'-rjjfej.tipy: -
are 54 banking activities and 12 always scouring for deposits; client .base of ’

are profitable, then go^ for those The market is'- huge. . says
12 and leave the rest to Cffi- Peter Stone*' “We are dealing
bank and Nauonal Westminster. ^th companies .-that would not broSrtS
We agree. Last year; we made ge t more than a~ cough and. a '.'

a 31 per cent return on capital ^ -part fn)m a . aty merchant S«0nd. andonora; feportMt. ;•
by doing just .that" bank unless they had paid a are. the profe^onaL.s^egtiawis-

Close’s profits — £383,000 .pre- £20,000- retainer for start'ers. n :
tax in the year to last June — It all seems ;the perfect setting SSSfipSSSSSfknSP*'
certainly attest to the wisdom for their venture; even down to
of the approech. As <. the the.mher-puzdin g tach of co.u-

BOARDROOM BALLADS

THE SAGE OF THE TRAIN

Except for those, of sombre mien.

Who ride the lonely limousine.

Or float to mcriings, through the crowds.

On chauffeur-driven silver clouds.

Executive morale is seen

Most clearly on the eight- fifteen. .

Where businessmen, in diverse suiting,
Perform their ritual commuting.

And 1 let, some sense and understanding

Of who-'s contracting or expanding;

And who are bears, and loho is bullish

Or where the order-books are fullish:

Who's laying off and who's recruiting,

And irhich collapses they are mooting ;

All this is traded, fast and free.

Across the plastic cups of tea.

For here it is the sales director

Rubs shoulders trith the tax inspector ,

And factory managers converse . .

With broker. City gent or nurse,

‘Across the usual divide

Which job and office may provide:

And free from the absurd inflatUM .
Derived from salary or statu.

And much is written in the faces

Of those who take more silent places.

And sit, between suburban stations.

Withdrawn from all the conversations;

Or, somewhat furtively and solemn,

Peruse the situations column.

And, animated now and then,

■ Make markers with a poignant pen.

*

*

Across the carriages they toss

The things they never told the boss — ■

Not secrets of the way they're dealing.

But what it « they're really feeling ; .
What more pretentiously is meant

By gauging business sentiment.

By experts too refined to crawl

Like flies upon the carriage wall.

The business mxcrocosmic view.

Is in the buffet-car from Crewe,

Or riding the commuter line

From Maidenhead and up the Tyne;

And he icho swaps the limousine.

In favour of the eight-fifteen.

May find some unexpected gain

Among the sages of the train.

Bertie Ramsbottom -

Next weak; Anglo- Japanese ventures

BUSINESS PROBLEMS e

Summons for
rates

Y CUR LEGAL STAFrj

three main desk diaries in petition -
Close's City offices just off stand it”
Bishopsgate. '.. :• ;•*’

The three executive directors
travel busily' across the country IT1UI
for much of their work. Peter . .
Winkworth spends about one- The ex

me ratner-puzsung taca. ui turn.- - r u . ,

petition - “we ouBot under- .■«"*“*. for .

it" worth.. If any - one ^ of. tb

stand it. doesn't like - the look;

I have a lock-up warehouse
used for storage only and not
regularly staffed. We .never
received the bill for ‘the rates
and subsequent!}' a summons
was posted whieh we did not
see until after the date for
which ft was set, so' that I
now have a judgment against
me in zny absence. The sum-
mons was sent in the ordinary
course of post. Should not
recorded delivery have been
used? Should not the plaintiffs
have been obliged to ensure
that a notice of intention to
issue -the summons reached
the defendant?

Section 109 of the General Rate
Act 1967 makes service . by
ordinary post effective. There is
no need- to give prior notice of
tention to issue a summons.

Letterof

indemnity

In your, issue of Wednesday
May 12 under Business' Prob-
lems you replied to an enquiry
about a Letter of Indemnity.
Can you please tell me if the

answer you gave in the reply
would also apply ito a lost
Unit Trust certificate that is
sent to the broker- by the'
Unit Trust Registrars by first
class post at the addressee's
risk?-

The basis of our reply in ,
respect of indemnity being re- ;
quired on. the issue of a '
duplicate share certificate is the i
provisions of the Companies j
Act 1948 and the Articles of i
Association of the ' company. !
Consequently there is not the
same cogency in an argument on
similar lines addressed to the
case of a lost unit trust
certificate. Nevertheless, the
fact that a duplicate certificate
should be marked as such, and
that the Trust’s register should
show that the duplicate has
■been issued ought to prevent
.there being any risk of loss
■arising out of the issue of a
duplicate certificate.

■ No’ legal responsibility con be
accepted by the Financial Times
far the answers given In these
columns. AH Inquiries will be
answered by . post as soon as
possible.

third of his time sway from ™ ' , S„°^f llre i,J lm ^°g in, all. But Do. board. dismjMttra

London - l^Lta^^re mto tte

The most typical client Js the basis of a successful bank is • W always apparentrbrifte !

small, often family-run business patt ing more at stake than- three £ .j* 1 * ^scussion "*»£** .-

heeded by a middle-aged entre- men ^ a boat with a dog and

preneur. says Peter Stone— and an unopened tin of pineapple. ,?- 5e

it would not be in textiles or ..TTLii Jc „ survival, to the , cohabit .

shipping-related areas. They ® aS, J? management -team ^witlr.^he I

have not deliberately gone after f^Jp e £. Wtoi^orth.^H w Sa “ e s f -

specialist areas of the economy Rnmnd-and Bfipu^tfofc- ^n-

“ hut business with the hieh foul . s , omBt 4 in S tip. there 11 be ceivably. this could engrader a 1
.«Knolo“or tai Sst ££ “ “L to s lwt

ioped iis n.o.nonium:-. There a« fed effocUve wayo SSSSk- 5^^^. •'

They will lend between to limit the risk - as far as is the . shared aspiratiahs'-wBScH
£50,000 and £500,000, but' about possible.?, - have counted 'imitt?- an *

£150,000 is the most common The first is the fhinily tree want to make

borrower for any reasonr’Ve

More at stake

£150,000 is the most common The first is the fiiinily tree want to make ito§e^o^ey^4nit- !
loan size. They will offer advice nature of Close’s client list. The, we're .not miiiri^jfhterested -in
□n raising more money where firet question asked- of every titles,- ruhh^pkt^'.VKrdGqffice
necessary. They will assist . new client is the same: how did empires." ", ;

. ' • • : .\^»S^.rvV : j-.v' ! ' t .r

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Convocation to the extraordinary general meeting
of Sonarep of July 7th 1982

All. the holders of shares Sonarep Sociedade National de Refiriagao de -- --Vy :
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tary) Ltd., regularisation of the social staff and / or .possible election of '£'•**
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posited in a' bank, with the mention.of the number of shares.-:: . ..

•10th June 1982

The principal', shareholder-'
Finolcb Co. Ina - '

. . The President s

Financial Times Wednesday June 23 1982

17

THE ARTS

Television ~

Antony Thorncroft

Could you
repeat that
please?

-Nsrneed to linger over a tele-
vision. report this week:
between vthem repeats and - the
World Cup have just about
squeezed., ahy creativity out of
the schedules. The one flash' of
tina^hation is the ability of
ITV and BBC to, dress up
repeats -.as great treaty— - The
Best -of British.” they flourish,
and "‘Comedy Classics,** too.
Still it .is more, "positive than
declaring “Cheap time fillers
.to pacify smaller summer
■audiences” and at least there
is no hardship at aU in watch-
ing The Likely Lads again, or
even The Good Life.

Repeats of programmes but a
few years old manage to
conjure up a gentle, lost world.
They are a nice contrast to the
World Cup which- itself omi-
nously looks like a repeat— of
every other World Cup. One
would only, want to watch Peru
play the Cmneroons once every
four years but it opens the
eyes to other styles, other stars.
And there is still a thrill every
time Socrates gets the ball for
Brazil. If -only Plato and
Aristotle were fully fit Brazil
would have a midfield trio that
would give the English attack
something to think about
Surfacing gently between the
football and the nostalgia were
a couple of plays, Chains from
BBC 2 and Somethings got to
give from Scottish, which were
refreshingly similar. It seems
that middle aged normal people
are going to be popular with
playrigbts for a few months,
and although Chains. the story
of ageing rockers trying to re-
capture the Margate of 20 years
ago, was made almost un watch-
able by the anticipation of the
inevitable disasters it had its
conversational moments. Oddly
the scenes at Eddie's 40th party

were more painfully true than
the escape on bikes to Margate
and. impending doom — in this
case double dramatic Irony.
Wife. Janine~ discovers men are
rotters just before Eddie has his
coronary. Mjchael EIpbjck and
.Geraldine James were- excellent
as the. genuine working . class
and if Nicky Henson was raSber
too good to be true as Tosh, the
doable, destroyer, he has the
physical presence to swagger
through the part. ■ • .

Somethings got to give put
forward the astonishing idea
that there are nice respectables
and industrious people living in
Glasgow. This play opened with
a secretary reading -a_ copy of
Annabel and then proceeded
with a love story which might
have made even - the fiction
editor of that soft boiled maga-
zine hesitate to use. But once
again Ian Charieson as the dour
Ian was very credibly shocked
by fast Ann's life story, and the
sense or a couple fancying eadi
other like mad while conversa-
tionally putting ' every foot
wrong -was “well caught. But I
hope Z never see that “ mad
dash to the airport to tell her
he loves her ” ending again.

Finally a chorus of praise for
BBC’s coverage of popular music
last week. It has a winner with
Pop Quiz, now, of course, in
hibernation, which scores by
covering a generation of pop
and thus enabling the whole
family to join ip, and I never
understand the criticism of Top
oj the Pops. At the moment it
has its content jost about right,
much helped by those marvel-
lous promotional videos being
put out by the groups. I par-
ticularly like ABC*s current
effort and that of Bow wow wow.
A programme devoted to such
videos wonld be marvellous: I
only hope their obvious cost
does not bankrupt the record
companies. Finally there have
been two excellent ' concerts:
The Old Grey Whistle Test,
which I have long despaired of,
came up trumps by repeating
its Ry Cooder set (and could
even do so again) and Central
must be thanked for its recent
Kid Creole and the Coconuts
concert— wonderfully entertain-
ing stuff.

Electric Phoenix/St. Barts

Dominic Gill

For ten days this week and
next, one of the City’s most
beautiful churches. teePriory
Church of StBarteolamew-the-
Great In- Smithflteld, -plays host
once mote to a festival of 20th-
century music, newly ' revived
under the auspices of the Park
Lane' Group. 1 The ' programmes
(as many is three each day)
inakfe up an uncommonly enter-
prising and -eclectic list: from
Debussy and . Sorabji (a perfor-
mance of the monumental, 3J-
hoizr long Opus CtomcembdUs-
ticum), and a fiOth-birthday
concert for Iannis Xenakis, to
no -less than IT first (or first
British) . performances of works
by younger or Tess^fcnown com-
posers. Londoners with a taste
for something outside the com-
mon South Bank musical round
are urged, to. investigate-
DetaHs from 01-637 9778.

' The- festival" opened on Mon-
day .night with the only London
appearance this- season of the
group of four amplified solo
voices called Electric Phoenix.
This virtuoso ensemble have
settled - excellently well after
their recent change of person-
nel: the delivery is dear and
confident, and the technique
once more of remarkable
smoothness, precision and
finesse. The evening’s major
Work, and chief focus, was
Luciano Berio’s A-Sonne, given
for the first time in this country
in its original version far five

• performers — tour de force of

• extended vocal technique^,
. shaped with - marvellous
.- economy, both gripping and

genuinely funny (and an
' object lesson' for real; com-
posers m .how' to- use' *bor-
. rowed," material: compose, it
-yourself).

-A sgnifieant part of Electric
Phoenix’s raison d’etre is the
very risky business of commis-
sioning new works. There was
.no spectacular find among the
three pieces they gave on this
occasion. Both Pousseur’s
dhquikme true sur lea Jar dins
Interdits (pretty combinations
of simple gestures}- and John
BuHer’s Kommos (short, effec-
-tive - dramatic cantata - ozl an
Aescbjflean - theme) ‘had the
notable virtue of knowing their

length exartlyrlx^were short,
and neither was a note too long.
David Bedford's The Way of
Truth, a 20-minute setting °f
Parmenides, could have bene-
fited much from the same
economy of manner: happy in
many of its lighter inspirations,
but obsessively prolix in its
working. The text was interest
ing: but so far as any organic
link with the music was con-
cerned. I suspect tbat it might
just as well have been Gray’s
Elegy or a shopping Hst."

Design, for Living/Greenwich

Michael Coveney

Nofil Coward’s 1933 comedy
wits, 1 in some respects, obviously
.conceived as .a vehicle far the
playwright and his close friends,
Lyfin ' Fontanne> and.' Alfred
Lunt , They all enjoyed a gipeat
success on Broadway with it,
but i£~ took six years to reach
the. . London stage. Alan
Strachan’s very fine Greenwich
production confirms the quality
of tee piece in the wake .of.
Michael Blakem ore’s 1973 West :

End rerival (which starred
Vanessa Redgrave},

The central thesis, the cele-
brating of promiscuity in life-
style as .well as love, was deeply
shoc k ing, at least to the Lord
Chamberlain before the War.
But what gives the play its rich
fascination is the fact that
promiscuity is viewed as a neces-
sary corollary to abiding friend-
ship. And Coward’s intense
loyalty to his immediate circle
was an immensely productive
creative force in his work.

Design For Living is set in
-Paris, London and New York
and shows how bright, aristically
careerist m&nagc & *trois copes
with the onset of success and the
outbreak of sexual passion. -
Gilda is an interior decorator.
Leo a coming playwright and
Otto a painter who finds his

niche in well-paid portraiture.

Gilda ‘sleeps with each man
in turn-, before marrying, a
tedious, morally upright art
dealer (subtly played by Roland
Curraxn). Otto and Leo are
abandoned by her, get drunk
together and set off on a world
tour.. They return to New York
to reclaim Gilda from the art
dealer- and a bevy of numbskull
socialites. The cleverness of the
play resides in its use of
ostracism 'as a comic tactic: the
amoral trio oust the representa-
tives of respectability in a third
act that is as brilliantly stylised
and quirky as anything Coward
wrote.

The production honours this
serious, still subversive dia-
lectical thrust superbly. Maria
Aitken’s Gilda— dressed in a
series of beautiful costumes by
Yukl — brings- an added dimen-
sion. of anxious doubt tD the
comedy. ‘

The surprise success, how-
ever, is the casting of Ian
Ogilvy and Gary Bond as Leo
and Otto. As a double act. they
convey both Coward’s ambiva-
lent sexual message and a
strong sense of spiritual cama-
raderie. The design of Finlay
James opens out, in the last act,
to reveal a beautiful art deco
folly of steel and glass slung
tantalisingly above the Man-
hattan skyline.

Maria Aiticen and Gary Bond

Rog&r Taylor

An Aldeburgh Week

As the centre for an important
music festival -Aldeburgh still
ihes a great deal going for it. In
the Snape Mai tings it possesses
what is arguably the fines con-
cert hall in the country, while
the sunrounding churches pro-
vide wonderfully varied alterna-
tive venues: most important of
all perhaps, there is the sense
of place, the fusion of Suffolk
pastoral with wild North Sea
coast - which finds in music-
making a most unlikely guest
Whether the festival stil has
anything besides is less certain.
It was inevitable that Britten's
death in 1976 would deprive
the events of much of their
-impulsion. A change of focus
was imperative: no -longer
could' Aldeburgh rely on the
cosmopolitan stream- of great
performers lured to the festival
by Britten, nor were there the
new works by the composer
himself to provide compulsive
novelties. Between a continuing
reverence lor Britten’s achieve-
ment and radical innovation the
festival was obliged to discover
a. new, distinctive character.

It may be that th'e process of
redefinition is star underway,
that it is jtoo soon to expect a
fully-fledged artistic policy to
be 1 in operation. Yet Aldeburgh
itself seems to have withdrawn
its moral support; walking
around the town during the first
week of the festival it would
have been' quite easy to over-
look the’ fact that a festival Was
taking place ther at ajl. There
were a ; couple of exhibitions
and a festival dub, but the bulk
of the town seemed quite indif-
ferent to the event, as if it
found the whole thing was
remote from the commonity,
imported lock, stock and barrel.
Even at the Meltings itself the
festival concerts seemed a
peripheral part of its business,
buried amid the craft shops
and art galleries, the tea shop
adn wine bar, now just another
stop on the coach-tour circuit

Of course Aldeburgh still has
its regulars, the faces seen
there every year for whom it is
as much a reunion of friends ns
an essential musical occasion;
attendance, especially at the
Mai tings in the first week this
year, was excellent. But few
events were absolutely essen-
tial Perhaps it Is sentimental

memory that telescopes past
festivals into a succession of
outstanding performances, but
looking back it seems as though
in its heyday Aldeburgh could
provide excitement every day
throughout the festival. Now
the emphasis is very much on
long weekends, with the mid-
week concerts less ambitious
and smaller-scale.

The centre of attention in the
first two days of the festival
this year was Kent Opera’s
production of The Beggar’s
Opera, <m which I reported last
week. If it provided only a
-'partially successful opening,
concerts in the Maltings on the
following two days gave pro-
ceedings more glamour and

acoustic. It was Bedford's
account of the opening tutti
that set the tone for the Double
Concerto, presenting it in stark,
dramatic, terms that were
scarcely leavened by Rostropo-
vich’s sweetly poetic touches or
by the serene hymning of the
Andante by both soloists.

The ECO and Perahia
departed, events became much
more low-key, and the focus
switched away from the Matt-
ings to Aldeburgh itself. A
guitar recital by Carlos Bonell
in Blyth burgh Church, largely
composed of unremarkable
repertory pieces, and a late-
night programme in Aldeburgh
Parish Church by the Loorian
Quartet were the relatively in-

An drew Clements, reports on a festival in
search of a new identity

allure. Murray Perahia’s
recital -was a complete replica
of his Festival Hall programme,
reviewed here yesterday by
Dominic G11L* But the English
Chamber Orchestra's Sunday
afternoon programme in the
Maltings really did rekindle Did
memories; the ECO was con-
ducted by Steuart Bedford, and
the soloists were Isaac Stern
and Mstislav Rostropovich.

Rostropovich is of course an
Aldeburgh habitue, but his
contribution to Brahms* Double
Concerto was partially over-
shadowed by Stern, both in the
Brahms and in Mozart's A
major violin concerto KJ219.
Stern's appearances these days
are so often, hedged around
with insecurities that such con- •
fident playing — the outer move-
ments of K219 attacked with
enormous gusto, the central
Adagio sung in ample, silvery-
toned phrases— -was delight-
fully ' unexpected. It was
certainly old-fashioned Mozart,
with a pair of flamboyant,
19th-century sounding cadenzas
to provide the finishing touches,
yet it accorded well with the
remainder of the concert, with
the. ECO in urgent, responsive
mood and sounding marvel-
lously- rich in the Matings

substantial fare on one day; a
serenade concert by the Hil-
liard Ensemble sustained
another. The Hilliard's pro-
gramme -was delightful but
essentially lightweight, and it
was a pity that the promised
British premiere of John
Buller’s A la fontana del
vergUtr failed to materialise.
The same group had previously
given Mactoaut's Messe de
Notre Dame in a late night pro-
gramme again in the parish
church, complete with plain-
song interpolations for the
Feast of Blessed Assumption.
It gave the wonderful poly-
phony of Machautis settings of
the Ordinary of the mass a
more comprehensive context
and more authentic variegation.

In the absence of the Buller,
the only first performance of
the week came in a concert
given the title of “James Joyce:
The Poet as Musician." in the
Jubilee Hail on “Bloomsday”
itself, June 16, by Jane
Manning with Roger Vignoles,
Lenore Smith, The a King and
Olga Hegedus. The main item
in the programme was 10 set-
tings of Joyce by a variety of
composers, the majority of them
drawn from the Joyce Book
published by Oxfrd University

Press in the 1920s. It presented
an intriguing conspectus of
largely neglected composers—
Eugene Goessens, Bernard Van
Dieren, C. W. Orr — alongside
Bridge an dlreladn. Roussel and
Sessions. The mismatch be-
tween the largely traditional
aproach to word-setting and the
ever-inventive approach to lan-
guage of Joyces Pomes Peny-
each gave the songs a teasing,
sometimes infuriating piquancy.

Buller’s Two Night-pieces
from “ Finnegan’s Wake ” for
soprano and chamber ensemble
was a reminder of the latter-
day interest In Joyce, and part
of the succession of works that
BiiUer based on Finnega’s Wake
n the late 19606 and early *70s.
The Night-pieces seem to me a
partial success: wonderfully
imagined sonorities in their
opening pages, but degenerating
too often for comfort into
modern English expressionism
as they progressed. The new
work, Gordon Crosse’s A Wake.
was a tidy, small-scale essay
for flute, clarinet, cello and
piano, managing its changes of
mood deflty. Yet it seemed an
inadequate representation of
the new in a festival that once
upon a time prided itself on
keeping abreast with British
music. ITs bard to believe
nowadays that 15 years ago
Aldeburgh staged the first per-
formances of Birtwistle’s Punch
and Judy: such enterprise would
seem totally foreign there now,
yet it is needed more urgently
than ever. " 1

Museum of the
Year award won
Stoke

by

The City Museum and Art
Gallery in Stoke on Trent has
been chosen as the 1982
Museum of the Year, an annual
award sponsored by The Illus-
trated London News and
National Heritage and worth
£2,000 to the winning museum,
plus a porcelain trophy sculpted
by Henry Moore.

The Museum, only completed
last year, has one of the
largest and finest colleottions of
ceramics in the world There is
also -an emphasis on local
history.

Per Freischutz/Covent Garden

Max Loppert

The sets are peculiar — the
original producers, G&tz Fried-
rich, and designer, Gunther
Schneider-Siemsseu, pictured a
ruined landscape, very much in
the aftermath of the 30 Years’
War, all frazzled trees and
■gutted churches, that chimes un-
comfortably with much of the
music, if not the dramatic facts,
of Weber's opera. The Wolfs
Glen scene is elaborate but un-
dearly plotte d les s luxurious
stagings have evoked more (H
necessarily not ail) of the
original Frisson. ' And, though
toned down by staff producer
Richard Gregson. Friedrich’s
way of setting his aristocrats
a-nrince and a-swagger in the
final scene makes a not very
interesting point in & heavy-
handed fashion. -
Yet the strengths of tee cur-
rent revival (which opened on
Monday) override most objec-
tions. The score revealed here
a trove of sometimes buried
treasure: the performance

moved for most of its length
with a relaxed flow that
declared the presence in the pit
of a native Weberian. Colin
Davis balances lyrical grace and
dramatic energy with easy
mastery; in 'his care, the music
glances forward to Berlioz and
Wagner, and backward to
Haydn, in a way -that reaches to
tee essence of this pivotal
Romantic masterpiece. A dimin-
i siting of tension in the finale
(with G Wynne Howell a less
than fully dominating Hermit)
probably needs no more than
minor adjustment; likewise tee
passing orchestral and choral

imbalances (tee chorus of
huntsmen sounding distinctly
meagre).

With the exception of Agathe,
Helena DBse, the cast is British
(and a variety of carefully
scbooled Anglo-German accents
is therefore the order of the
day). It offers no outstanding
single element, of a Ludwig
Weber or Leninite kind; but the
impression of a happy all-round
suitability is contradicted only
by Miss D5se. whose natural
vocal charm and creamy good
looks are required to compen-
sate for much tvilling but
approximate vacalisation, not-
ably in the two solos. Alberto
Remedios (Max) and Donald
McIntyre (Caspar, remembered
from 1978. this time a late
replacement for Siegfried
Vogel) both Tefined their por-
trayals in their Sadler’s Wells
days. Both are still in powers
fui command of their roles —
Remedios. a handsome Frans
Hals figure, discovered after an
uneasy start a much more win-
ninsly lyrical approach to his
music than either of his pre-
decessors. Kollo or Hofmann.

The new Aennchen, Yvonne
Kenny, is a success; so too
Roderick Kennedy's Cuno,
Philip J oil’s Onokar, and Jona-
-than Summers’ familiar Kill an.
If. as seems likely, revivals are
needed to occupy more of the
Royal Opera’s future than new
productions, a diet of such as
the company’s recent Pel leas,
Tito., and now Freischiitz will
prove no hardship.

London Symphony Chorus

David Murray

With sponsorship by the
Hogg Robinson Group, the
London Symphony Chorus was
surrounded on Monday at the
Festival Hall by first-class
collaborators. Their director
Richard Hickax had the Royal
Philharmonic (in their best
form, as Brahms’ Academic
Festival Overture proved imme-
diately) at his disposal, and
Peter Frank! for a Mozart piano
concerto, and as soloists in
Janacek’s Glagolitic Mass Linda
Esther Gray, Robert Tear, Della
Jones and John Tomlinson —
rich casting indeed, considering
how little tee alto and bass have
to do. Miss Gray and Mr Tear
were dauntless, managing to
project their passionate lines
through the formidable orche-
stral hubbub. -
Yet it remained the Chorus’s
concert,- simply because they
took the full weight of Jana-
cek's wild and marvellous score
without a single slip from
grace. Clean attack, confident
pitch, a big, burnished sound
and enormous vitality: I had to
take their Czech (Old Slavonic,

to be exact) on trust, but a
better choral performance of
this music is hard to imagine.
Hickox secured orchestral play-
ing of matching conviction,
with good sense made of the
oddest swerves and hiatuses in
tee score, and remarkable
success with the fearful prob-
lems of balance. Ian Watson
gave fine, rumbustious accounts
of the interventions for foil
organ. :

In Mozart's A major Concerto
K. 488, Peter Frankl was parti-
cularly bright and imaginative
— piano tone almost brittle
from time to time, but quite
melting in tee Andante (taken
almost Adagio). He is patently
in love with the music— quite
right too— and sheer committed
tenderness justified a reading
that was a long way from taste-
ful routine. He and Hickox
took the Finale at an unstinting
Presto, requiring some heroism
from the bassoon, and yet con-
trived to throw fresh light on
the episodes. Frankl's playing
sometimes seems over-comfort-
able; not this time.

Royal Academy Appeal

Antony Thorncroft

The Royal Academy yesterday
formally announced its appeal
for £6m td> secure its future.
At the same time it reported
teat in two hectic months it had
already gathered £lB6m towards
its target, including £250,000
from the Government and
£500,000 from an unidentified
company trust

This is tee Academy's first
ever appeal for public support
in over two centuries of activity.
In recent years its financial posi-
tion has worsened — for example
routine overheads have in-
creased from £50,000 in 1960 to
over £700,000 last year — and
although successful exhibitions,
like the recent Great Japan

show, can meet some, of tee ris-
ing costs the Academy ended
198! with an annual shortfall of
•£420,000.

The Academy has energetic-
ally embraced self-help in
recent years and has almost
trebled its revenue in five years.
By selling off investments and
■by tee success of Great Japan
it is starting the Appeal with
a clean slate so donations will
not go towards an existing
deficit. Instead the Academy
is looking for £4m as a capital
sum for revenue support and
endowment, on such things as
student bursaries at its school,
and £2m to improve its build-
ings.

THEATRES

SHY. S. Alf^ord. 856 SW8.CC MO

MSS 839 30921

,w. Thor 4 Sat Mat

TON CHILDREN OF
LESSER COO. PLAY OP THE YEAR
ET 1811. Jean St Clab- miaou

a bath Quinn until July 9.

WYCH. S 836 6404. CC 379 6233.

a start *«au>n. ALAN HOWARD;
t Actor ol the Year In the RSC
arcj^nino^adwltoii ..of. GOOD.

0. Wed mat 2 tor arlcv
SO. £5.

& Sax

on ±8.

Sot "Mat“S.~ ROSS MARY LEACH.
IT ID SWIFT- HA CHARING CROSS
kf|b^Htw» Hantf. OVER ZOO

5v MASON'S GREETINGS.

“sotJS 01 ^

UK. .London's most star-studded
Kt EiBjJD. Mats Wed 4 S*
Box Off Re 10 am-B pm ln
Hi-flhonf- Pf tit 4 SA£ - HOiLWtS

2^ 8665^7. Credit WJJS 01 -»»
1-6184. Teledata *>1-200 O-.00.
t service- Grnun- sales 01-379 6061.

0 bk(K01-B39 JriSI. THE SOUND
MUSIC. London's Greatest . value.

1 Mat? frem£2-SO now available
LJr MOW BOOKING tO SEPT. IB.

IA RESTAURANT THEATRE,

ss^o«ep rtl iY -sariss

“fe ^nciKfcVeS

Ba^ARE 1

TOE today Smi a0 /,f22

mts £3 from 1v WJ

t pc. M -pOL- _

linw 'zs.- " 5*ate aval FW?

2a - 29

plane. Brain**:
Concerto No. 1- Tont 7.15 Ojn.

Sr visSj

Mono director- and

CAMBRIDGE. CC 01-836 ' 1448-6 OfiE-
7040. Grs bltn B3G 237 q . SUSANNAH
YORK. TOM BELL. TOM BAKER, RALJH
BATES. PAULA WILCOX & IRENE

HANDL In HEDDA GABLER. 7

only. Eve s 8.O.. Thurs A Sat 5.0 A 6.0-

CK1 CHESTER FESTIVAL THEATR L 02 43

S^N*% n |° , SSca hWtt ‘ n '

at 7.30. -

TonlBht

HOMAGE TO DIAGHILE Vi • _ LA

ptTROUCHICA. RudoM Nurovev **H
dance at every, per lor malice.

COMEDY THEATRE. 5 930 2578. Credit
card bookings 839 1438. Gn? sales 379
6061 .°°Mon-Frl B. 00. Sat
Thurs 3. Sat S-15. Price &2-5O-C7.00
i not suitable for children). STEAMING
. bv NELL DUNN.

COVEMT GARDEN- 5 240 1066. Access'
Visa BSE 6903-' 65 Anwfctoeats
tar all perfs tMOn-Sati Irani 10 am
oa tta dafTTHE ROYAL OPERA. Tont
A Mon at_7.30 ta cjenwxa tj
Tomor & Tues at 730 Der JJreiseimte
IQAFi S S £5. 1 hr before B*rf, JuBlrct
to avaHabiWvi. THE ROYAL ^ALLeT-
Frl at 730 a »*_«
chancre of time). The Firebird, Oippew-
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CRITERION. S. Air -COHO. 930 321 6. CC
179 Grp reduction 138 3962.

Mon to Thur 7.30. Frl & Sat t.M *
8 45 Over ‘S#0 performances. DARIO
Fbl' COMEDY CAN'T PAY? WONT-
PAY I Students all seats £3.50.

DON MAR WAREHOUSE. 41 EarlhamSt.

SCC Ol -836 107 1 >379 6565. A LPREp

MARKS In AUNT MARY try Pam Gems.
Prtr Tpn't 8. Owns Tomor 7. Sub cvfls 8

DRURY LANE ThMlre RovaL CC oune

JSSUsFD." tSE BUa^rtd *

Sat 3.0- 'Credit tort HotHnc 930 9Z33-

DUCHESS. 5 CC 01-836 8243. Monday-

HicKse.

, jm W r u A WY

DUKE Of YORKS. OX 31 22. C£_ JjM

9837. Group §061- Mpn-Jgf

-iWm “opTi«L jtog »»

Restaurant a so. Theatre tor onlv
8SG 0960-

SS5«*ff'BTtfWUB

"7M5, 1 Matinees Sat 4.0;

GLOBE. S CC 437 1692. Mon-Trt 7.30.
Wed mat 3.0- 5.0 & 8.0. GERALD

HARPER. VIRGINIA MCKENNA I. A
PERSONAL AFFAIR. Credit card Hotline
930 9Z3Z. ' •

KEJTH. MICHAEL .DENMW^JOHN

B ®

ratUi ;*

Choice. '

Inversion ^ ' JernfM-gSw; - ' .&*

HA YM ARRET THEATRE ROYAL- ' S30

nph FrB ^R*s^ v MU k*GWr

QUA YU. MICHAEL DENISON , In A
COAT OF VARNISH. . A new . stay -by
■ Ronald Miller. ^

HAYmXRKET 'THEATRE ROYAL. 930
9832. JUN jyojv 21. #ENEtOFE KEITH
In. HOBSON'S CHOICE. A . comedy bv
Harold BrNtoBK. Directed BV Ronald

HER MAJESTY’S. Alr-cond. S30 6806-7.

Group sales 379 6001. Eves 7-30- Sat

mat 3 .0. FR ANK FINLAY In AMADEUS

bv PETER SHAFFER. Directed by
PETER HAUL. Credit card Hotlines 9X0
, 92S2 or 930 4025-6.

KINGS HEAD. 226 ISIS. Dnr 7. Show

8. MARRY ME A LITTLE conns by
'Stephen ■ Sondheim.

LONDON PALLADIUM. 01-437 7373.
MICHAEL CRAWFORD and The entire
Cart of BARNUM CURRENTLY ON
ANNUAL VACATION. BOX OFFICE
OPEN NOW, For ah performances from
RE-OPENING ON MON NEXT through to
Frt S ol iMFrt.m*, Evenings 730. Mata
Wed A SatS 2.45. ' Bamum Hotlines
01-437 2055. 01-734 8961 tor Instant
credit card reservations.

LYRIC THEATRE. Shaftesbury Ave. Box
■ Office 437- 3SB6. ■ Tel. Credit card
Ups accepted. GLENDA JACKSON.
GEORGINA HALE -in SUMMIT CON-
FERENCE. Anew play bv Robert David.
MacDonald. Evas 8D. Meta Wed 3.0-

LYRIC HAMMldlUmt S CC 01-741
2311. . Evas -7J0^ Tbiir Mu zJD. .Sat
4.30 and 8.1 S. - HAY LEY MILLS.
JONATHAN, PRYCE. TALLEY'S FOLLY
by Lanford Wlledn. Directed bv Marshall

LYRIC*srtlDIO! Eves 8 pm Sheila Gish

as?, w^vs^vss^ *

may FAIR. S_ CC.GZD

_____ Mon-Thun

Sat 6 Sr. «4& Richard Todd,
ittt/ Carole Mowlam "

OP MURDER. SECOND

GREAT . YEAR. -

NATIONAL THEATRE. S 9Z8 2252.
OLIVIER 40Mb rt*K) Last berff Tou t.
Tomor 5 JQ THE' DRESTEIA In Its

entirety (bTmm -be prompt for S.sg dm
start — regret, latecomers mnst stand nl
In terva l). ■ _ .

BssrijnSresti"

COTTESLOE ‘ UmaU ' auditorium — Jgw
gri«_ttrtai 'Freys, .from Totripr _7.30 THE

KR

__ OPERA bv John Gay.,
at 92* 2033, Credit

Su'd MW

so at HSR t-UjKTY-S.

NEW LONDON. CC Drury Utw. WC2.
01-405 0072 or 01-404 4070. Eva 745.
Tues . and Sat _3.o 4 7.45. The Andrew
Uoyd-Webber-T. s. ETtot Award Winning
mttelcal CATS.. Group bcuklnns 01-405
1567 <M 01-579 6061. LATECOMERS
HOT ADMITTED WHILE AUDITORIUM
IS IN MOTION. PLEASE BE PROMPT.
NOW BOOKING TILL JAN 29.

OPEN AIR REGENTS PARK. S 485 2431

instant credit card booklnds 930 9232.
Kate O’Mara. Christopher Neame 4

WffifsmrA ^jpssffwa

T ^J^U?°i2 s * n £Z s . , "' r ' Comcdv

PALACE. CC 01-457. 6834. « .VtoUlM

437 8327- Andrew Llova- Webber's Song
AND DANCE. Starring Marti Webb 4
Wayne .Sleep. -Limited season now
extended to Sept 25 1 982. Ever 8.0. Fn
A. .Sat 5^5 & 8 JO. Soma oood seats
still available most perfs. Group u
S7D 6061.

PHOENIX THEATRE (Charing Cross Road).

01-836 *294-8611. Era 8.0. Fr| & Sat

6.0 & 9.0. ONE MO' TIME! THE GREAT

NEW ORLEANS MUSICAL ONE MO"
TIME » h GOOD T1M6I Group nlw
01-379 6061. Rina Teledata 01-200
0200 for Instant confirmed CC .bookings
24-hour personal service available. Last
«*ks. Special students and OAP discount.

PICCADILLY. S. Alr-egnd. 437 4506. CC

379 6SE6. Group .sales. 01-836 3062.
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Mon-Prf 7.30. Mat Wed 3.0. Sat 5.30
A 8.15. Students £3 JO In advance.

PRINCE EDWARD- TIrn Rice and Andrew

Lloyd-Webbers EVITA. Dir. by Ha)
Prince. Eras 8.8. Economy price Mata
Thor 4_Sat. 3.0. Evas perfs. end 10.15.
Box Office 457 6877. CC Hotline 439
8499. Gro sates 379 6061 or Bro Inst
24-nr bkgs Teledate 01-200 0200.

01-2 00 0 200 (24- hr bkgs). ROY KUDO,
CHRUFTOPHER TIMOTHY In UNDER-
NEATH THE ARCHES. Evgs Mon-Thun
7.30. Frf 4 Sat at S.15 STBJO. Group
Sales Box Office 01-579 6061-

QUEEN'S, sec 01-734 1156. _4

4051. Credit rords 01-930 923

sales 01-379 6061- E ve ni ngs a

Wod 3.00 Sat 5.15 & 8.30. . ANOItlU
COUNTRY b r Julian MltchelL

RAYMOND R6VUERAR. CC 01-734 1SB3.

At 7.00... 9.00 and 11.00 pm. Open
Son*. PAUL RAYMOND presents THE
FESTIVAL OF EROTICA. StaClaT con-
cession to members of HM Armed Forcra.
Admission £1.00 to any ' 7 Pm . perf.
25 tb sensational vear.

ROUND HOlKE- 267 2SS4. TALKING
BAND OF NEW YORK In GIOCONOA
4 S1A-YA-U,aml TRI3TAN 4 I SO 1,7.
prgw i 3, 5 July 8.0. Opons July 6
at 7.0.

ROYAL COURT, 5 CC 730 J 745. Evn
8.0. Sat mat 4.0. Mop - E ra* A Sat'

ROYAL COURT THEATRE UPSTAIRS.

ENGLAND by

Tue A Thor

ROYAL COURT THEATRE
730 25 M. Ol FOR EM

Trevor Griffiths. Eygs 7.30.
mat 2.30. All seate £2.

SAPUMiy WELLS THEATRE EC1 . CC 278

8916 CB nnest. Grp sales 379 6061. 24-
ta Inrtantw confirmed res 200 0200.
Tlh Sat; Eros 7.30._Sat Mat 2.30.
AUSTRALIAN DANCE THEATRE.

Ton.t! ImpromptulParadlpmrwintcT- By

Spring fstar Ends. Tn.mor: White We
VteKhed. Northern Ballet Theatre June
28. to July 10.

Srd.Dance Subscription now open. Ring
01-278 085S f24 hrsi for brochure.
AMPLE FREE PARKING after 6.30 pm.

nsst.* wsassa

MICHAEL BLAKEMORE.

ST. GEORGE'S SHAKESPEAREAN TH.
OT-607 1128. Perfs T.» pm. TWELFTH
NIGHT Thurs. Frl. MACBETH Sat nr day.

ST. MARTIN'S. CC 836 1443. Eras 8.

Toes. Mat 2.45. Saturdays 5 4 8.
Asatha Christie'* THE MOUSETWA*,
World'* kmnest-ever run. 30th Year.
Fully akryoandltioned theatre.

VAUDEVILLE. CC 01-635 9988. Eves 8.
Wad mats 2.45. Sats 5 4 8. GORDON
JACKSON III AGATHA CHRISTIE’S
-CARDS ON^THE TABLE. Fully air
conditioned ttmacre-

VICTOR1A PALACE. CC 01-834 1317-a.

0I-B28 4735-6. Grp sates 379

6061. DENNIS WATERMAN, ANTON

RODGERS. The N'

CITY. -

ss?

MutVCal YflNOY.

3 pm. Credit card

Ine 030 9232.

VICTORIA PALACE. CCJN -834 1517-8.'

01-828 4735-6. Eyps T^ a., M ats Wad
4 Sat at 2.30. Limited number or good
Han avail tola vreek. _ ELlZABrm

LILLIAN *H FIX MAN. Q-cdrt* Hards

mas o &&£ fl “ 1 ’

WESTMINSTER- CC 854 0283. HANNAfF

iFBffVk £3$;

ROBERf POWELL » PIHlip

LEE -MONTAGUE as -Raymond Oandler
1 7 PRIVATE PICK. A Celibratlofl - of
the 40 s det e ctive ■ movie. Red. prior
preve Irani June 26. Opens Jane- 30.
Mon-Hmr 8.0. FN 4 Sat 6.15 S, 8A5!-
office novr open,. .• ■

WYN0HAM5. Aff-COhd. S 836 3028. CC-

.370 6555. Grp redactions 836 3SB2.:

M^-Fr 1730 Sat 4J0 4 .B.( {O.T?W*

at 2.30. Record UK run tor anv-
liner play. Last -B- maeks. - coun

W3on£:

YOUNG VIC STUDIO rWaUrteM, gag
6353- Until July -2. Evpa 7J0. SOME
ENCHANTED -- EVBNIIKG, by . C. 8,
TAYLOR. AU -seats £1.50.

F.T. CROSSWORD
PUZZLE No. 4,904

ACROSS

1 Delightful daily china (8)

5 This reckless driver crashed
through overheating and
damaged wings (6)

10 Robbery in Bracken House,
say. What was taken? (5)

11 Ravenous cry of poet, almost
(9)

12 PM not for a NE develop*
' meat (9) ’.

13 Unfit to spread paint (5)

14 Forerunner of some oteer
aldermen. (6)

15 Top guitarist goes wrong on
Jibe road' .(7)

18 Announcing appointment to
, 30b. (7).

20 Birty mountain-pass (6)

22. Cbffee becoming tea after a
little, while (5)

24 .Domestic flight from Cassai
. - (ret.) (9) .

25 Awkward quality of a super*
'. - fluons Saint-Saens movement

(*>

26 He opened for England with
a maiden (5)

27 Longs for end of May and
gains, by Labour (6)_.

28 Charges feilow with appoint-
, . mehte (S) ..

DOWN

1 Lbne wa&er on dry grass
.in'.fhe romantic'east'IS)

2 Beer right fo head? Unlikely
mefltal condition! (9)'.

"S'Recbttring somebody, per-:

; haps, using one’s' TA
• mflitaria- (15)-
4 Sister-ship under brders?-'(7)

6 Rearing advanced delivery

• terms? (8-7)

7 Greek BDA girl like a rose?
(5)

8 Ghostly, weird paztides hav-
ing no nucleus (8)

9, Heats E n g Ksh airways? (6)

16 He can account for the form
. of totty-tipped mounts (9)

17 Bond payments, for examole

- .(«) .

19 Well self -productive (6)

2ft No live main? (4, 3)

21 St<^»s giving comfort in Civil
Service (6)

22 Conservative in Italian house
—one in plot to overthrow
tee head (5) -

Solution to puzzle No. 4,902

laBHUBBt aaiaaBEa .
-a .. ' 23 -13 □

fiScmasHci maasaQa

aaaHtaamnnoi ^ snna
- a cj a , n a
aaaQQ oanaciQna
Q 0 3 M ' □

aaciaaaBa QBnraH
a □ a 07 a
Sana GnaaaEiaam
a ni a a a a s
andaaoa annaniBra

■N Ml ME ■ MPT ■

JB.G[E]Nfr]R{Y|ip]E[g1

BBQ00I3

FINANCIAL TIMES

U.S. STOCK INDEX FUTURES

BRACKEN HOUSE,; 'CANNON STREET, LONDON EC4P4BY

Wednesday June 23 1982

■ : 1 ■ ^ v. 'f :

By David Lascelles in New York

Defence and

the alliance

A KB THEY 1 a W wfc£te
cottar numbers game " or
“a valuable hedging tool
ip today’s volatile markets? ”
Foot months after they were
bora, America's new-fangled
stock index futures are stall
snared in controversy as these
two viewpoints uttered at

.different tewr«fce*3s4^ .... .. ft,
.Value Lme - .fisdesc - • v „

. unwelg^ed/aveiage; Of its ram* '■ ;

US. STOCK INDEX FUTURES

Weekly Volume of Contracts

CHICAGO

pen ait. stocks, ifo thjr jxtovajneat'

; in ■>; small-; dock- -has a^nnich' ■
impact/as.-Exx<aT jor. "^laMraf -
Motors. .Because at' tins,/ jfite

wmr m » m this month show. But someone

most Bee them. . Since their
-i- obscure beg inn ings oo the

PUBLICATION of this year’s replication of effort too many C5ty Boaid of .Me in

defence estimates was post- members having an army* a yebniaay, two more exchanges,
poned because of the FaBdands navy and an air force. «1 in New York and Ghtaago, have
crisis. At one stage it was being more or less general purpwes- ^ ^ a fourth; wffl

suggested that they would have There is &e parallel matter of foHwr shortly: Every day,

to be rewritten in die Hgit of too many memberss^Mng to 90me 20,000 c o ntracts now
the lessons learned and would maintain a c^prMemive flange hMds, end hardly a week

not appear until the autumn. In armaments m bw; iL"5 «oes by without a new trading

the event, the Government has to too fldjMn ■*“» tod

gone ahead and published the weapons sys^^which are too inAtrr r

original document, though with expensive. AH toe«s questions Stock natec ft feges w ere

a covering note saying that (here have been on toe Natojpnda bound to be conttOTBrsiri

will be afurther White Paper in for years. But rf cost has because they add a new and

» months’ time become more than ever a con* potentiafly vast temenswm to

fot specaa«Kiwoo;a^inere-^ v
meat: bat«tefls^*t ' ‘to 11
hedgers wtro need aa-indextnat : \ r
““trad®"' 1 .^i?

- 'City cUdaaS that . its iadtefc'fcas , . .£

anticipated markets movements \.y \ .. vn< l ‘
..better.'' that rofee®s.. ; l Jt; '-&}& -;V f

.‘-.toad owed #»■ 3 ' WJ s

" st sfaa^e prices on-May^afewit ?• .1 .• S *L *
• a: Wieek before k iegakv- V .Ay

IA

I KANSAS CITYl

NEW YORK)

a few months' time.

-ntis was llbe right decision. In

the first place it would be un-
wise to seek to recast British
defence policy m response to

to agree a measure of specialisa-
tion. There is no sign whatso-
ever that Mr Nott is seeking a
review of the way Nato works.

one wholly unusual campaign, nit rfv oref CT-

whatever the technical lessons JSAf^^nressure for Storm

place Mr John Nott, the Defence ' £ Jr** n u c

Secretary, evidently beeves rather than the U&
that he has a broadly coherent' Trident too is an ashamse
policy which is worth restating, question, or ought to

question, or ought to be. If the I individuals

potentially vast dimension to
the already . £ast-tnouing
financial futures industry.
itseHf still a source of mystery
and unease to many people. But
the promoters of stock index
futures expect they will not
only gain acceptance but
evolve into the biggest financial
futures instrument of aEL
Ftnandal futures - give

Miitypjhm a*

HOW— AND WHERE- THE MARKET OPERATES

The document published yes- gHaance as a whole believes that

terday is therefore very much a a British
repetition of what was said last wea pons
year. There Is perhaps a deterrence

a British strategic mud ear
weapons system enhances
deterrence in Europe, the case

sKghtJy greater emphasis on the for it would be ^eatiy
need for Britain to be able to strengthened. But the evidence

take independent action if the is lacking. Trident looks like a

exposed to financial markets a
way to hedge against unfavour-
able movements by taking
positions on the opposite side
of the market If they do it
right they can hope to make
profits that will offset at least

country’s interests are chat dangerous hankering after I ^ ^eir losses ff the under-

leoged. though even that came independence ^ in
out more clearly in Mr Nottis dependent wotwL
statement to the press than in tt r ■,.<
the written estimates. The KeplOCemem
essential message remains much The other outst

lying market goes the wrong
way. Because traders usually
need to put up only 10 per cent
of a contracts value, whereas

the same: the central threat organisation of defence

comes from fhe growing military expenditure at home. Mr Nott

The other outstanding issue they must pot up SO per cent
the organisation of defence to buy shares outright, they

power of the Soviet Union and claimed yesterday, in a note of
Britain must resist if as part of triumph, that the replacement

an alliance. The principal con- of fhe Falkland® exercise

straint is cost. Trident remains
sacrosanct.

-including tiie new ships —

also attract a lot of speculative
trading.

In the 1970s, contracts Cor
interest rates and currencies
became firmly established and

StOCK INDEX futures pro-
vide investors in the stock
market with a way to hedge
against movements in share
prices, or simply speculate on
where the market is beading.
They are traded in the form of
contracts to deliver the value
of a set package of shares,
usually the components of a
well-known index, on an
agreed future date.

The value of the contract,
which may be traded in the
futures market, fluctuates
with changes in the index. An
investor who fears share
prices will decline “ shorts'*
or sells a contract, hoping to
be able to buy it back later at
a lower price and packet the

difference. '

An investor who wants to
protect himself against a rise
in prices (for example if he is
due to receive funds in a
month’s time but expects the
market to strengthen before
then) boys a contract in the
hope of being able to sell it at
a profit Idler on. '

The advantages of trading
the market through futures
rather than directly are
higher leverage, lower com-
missions and opportunity to
speculate on the course of the
market as a whole.

The UJS. authorities have
approved five stock index
futures contracts, only three
of which have begun trading:

• Kansas City Board of Trade,
tile pioneer, traded, its
first contract in- February
based on the Yalpe line Index
of 1,700 stocks. . Trading
volume is about 2,000 ‘ con-
tracts dally- *

• Chicago Mercantile
Exchange began trading on
April 2L Its contract is based
on Standard and Poors 500
(400 industrials phis, utilities,
transport and financials).
Volume 1530.000 a day. '

• New York futures exchange
opened Mar 5. Its .con-
tract is bared on the New
York Stock Exchange com-
posite Index of 1,525 stocks. lt
wants to start trading sub-
indices in utilities, fiwanriate.

transport and industrials titis
summer, -Volume 5-3, 000 con-
tracts a day.

• Chicago Board of Trade
wants to trade a contract
based- on the Dow Jones
average of 20 industrials, the
best known- UJS. index. But
Dow Jones does not want its:
name associated with: stock
index futur e s and has taken
legal action to block tbe move.
The board also wants to trade
sub-indices.

• New York Commodity
Exchange also wants to trade
a contract based on the S and
P 500. but is facing a legal
challenge- from Standard and
Poors which has granted
rights to the CME.

. .- The - other two;, audited,

NYSE and Stapdaxtf Poo&
are weighted ^average*- whii4i .
are more representative of j&e. :
market as a-wfaai& : Of ■febe'teu, i
-Standard and-Pamk ^trading: :

■ -about-

NYSE. . But whfle- the <3®cago -

• Mercantile ' Exchange cfctlgjg-'j ■

- this proves ite Superiority; other *
exchanged have accused ;^he

- CWCE-qf- “ churning toe con-L-
ttact’' to’.’-geaterat^iT '.'vbfamo:-!:'
artificiaSy. The' S and P xfoea,

- however, ; enjoy the'; advantage ?

of betng the; yardstick .against '
vdiicfa most InotiiaEtioiial TKKt* : ;.
foHb - managsi' meaSara; JiieSr- ' '
performance^ •• - r ~\- ■ 7 .

• . Thie : : tiititer .’ dompetitiott
between the- exchanges ' --far
attention te-hotJimt riv^iySat- -
a. deadly matter of ^un^Wal !TKe ;
amu of sneoas Is YttstCtoagdod
«ratact, Oace tt goes, yofeeme '

1 pretty ; a /•

halt.-: Several; fiuaacBMvTfiidterte'}
have. a4ready -d*®d -

U 1“
A ,:.t

fk

£,&-

-

■ftp

. -SB j:a '

- >

5Sf

' 'ir* <?'
-> 1

. i# r

■' , ipior;

While ; stodt^indea: ^ ^ tetoteS: UM5T \ ; > - -!S
be riding a" , boom-- lUKC-.ofiEb^' . . •• ‘

Examination

will be borne by the Exchequer are now spreading to London,
without prejudiemg the 3 per pitting together contracts
cent increase in defence spend- for- eaiHtaes took longer for

There is. pace the tight wing ing already agreed. Ihat was r eg n lat oi y
of the Conservative Party and sai d in public, pro bably in an reasons,
the naval lobby, no reason to attempt to pre-aupt the i.

But putting together contracts

for equities took longer for in the Standard and Poors and they gave the go-ahead tost chairman of the Securities and rial press, on which ’Americans

reg u l a tory and tedudcal Index; let alone the 1,52b winter. Exchange Commission, said they rely heavffy tor opinion about

reasons. shares in the NYSE Index. So However 1 the contr oversy would actuaUy enconrare invest- innovations, has been generally

.be rklkig a" , boom - dqjv; f edchf . .
exchange' is keasriy 1 “awafe that j - .'.’
only jbe fittest; will - If y ;

the Me of otiber futurtMs 'aby-'. ■' .
thing 'to go by’, teie emerge
ask a.teader '.'tew -atfritf aHvffie j
-business D^e;oftte» xnar tefly
survive' by finding,. a, nkfce. -

chairman of the Securities and rial. press, on w&Ach ’Americans . '.The tivohition '-qf.'.teoick^indeac.,.
Exchange Commission, satol they rely heavSy tor opinion about futuregc sO^^ v

the naval lobby, no reason to attempt
believe that Mr Nott actually Treasury,
enjoys cutting the number of In prao
surface ships. But it is a replacetm
question of money. It is not be ginni ng

reasons. shares in the NYSE Index. So However ‘the con t r ov e rsy would actually enconrage^ Invest- innovations, has been generally ' however. Ttm-p^cipatzW^** i .■

The Ing question about the contracts have been designed fingers on and it received a good ‘ ment in - stories by allowing hostile. 1 The Wail Street ness of . ail - - , ffie; ^ .’rimiracts ( ■'

financial futures is riways to deliver the equivalent cash airing on Capitol Hitt earlier people to offload some of the Journal -, has denounced the .-launched; so/jsfite: Jtfie ■

whether they will twrm the value instead, multiplied by this month at the House Energy risk. He even suggested they gambling aspect Forbes re- hedging opporttefitfes th^y offer

underlying market Futures in $500 to beef them up. and Commerce Committee. Con- . would lure money oat of gaznhd- minded its readers, in a recent are,, all too Eew' ptet-

general do not have an This immediately sets them gressmen picked up toe gamb- ing. Mr Shad, a former Wall issue that futures are a ^*zero~ foUoy.hsveXSQ^stori^^toan; ■

In practice toe battle over toe ^gy Vmitwi the value instead, nml tidied

replacement costs is ; last raM}eii y iB g market. Futures in $500 to beef them up.
beginning. There wiu be toe ggjjg^j do not have an This immediately sets t

nm.l nOM- mef atMl,. ” . _ . _ .. .... -

Few'peHt-'

b;tetoeah;

clear that toe alternative route nsual conflicts over cost escala- j record, and apart from the rest of toe finan- theme but also expressed Street investment banker, is a sum game*!: one man’s profit : is . : and inost : ;; to

rtf mittinor fho Rritic)i Anrnr rtn rinn anil whffrtflr tfh*» 3 Tier nftBf I ». . e .1 > Tri r.^4. i — * v — la. f a rro> Us nf fiifiifnr-' vhaii’M wnfifiA tunn fraikJVHirlradxuice , ' wiJitIoi ovmfhni* wiow'p lnre Tvi ftia rfnjtk will

of cutting the British Army on tioo and whether toe 3 per cent
the Rhine would be cheaper and means 3 per cent above toe

memories of episodes like the dal futures market, because it fears that futures would entice keen free-marketeer, and while another man's loss. In the stock protect

— •« ? ■„ j- 1 1 Ru - J - TTnroct/\w fwvvn tkn M-aaTp dnac vw# WkCmliofA Aihnw Va mArlrAf W AOnfraef wi ntitt Atirt J

not dear at all that it would he level of inflation or, given toe
politically or militarily more tendency of defence costs to

Hunt silver crisis die hard. The means people can trade them in investors away from toe stock he does not regudate tortures, he market, by contrast, equity, can drop zn a hantffoibf stocks, not
U.S. Treasury and toe Federal toe expectation of pure cash market with its promise of .quick, is responsible for ensuring increase to everyone’s benefit, toe market a£ TLvtoteb. j . . ^

desirable. In seeking to pre- rise even fester, is meant to be . riwa __ ^ worried that to obtain securities or currency, woura inject more msraormy
serve the forces on the central a vriume increase. Asam^ tins I ra te futures would Thas has triggered worries that toto the markets when the U.S.

Reserve, for example, have profit on delivery, rather, than, highly leveraged profits. This • orderly trading in toe stock

worried that to obtain securities or currency, would inject more instability market

front we think that he has made
the right choice.

■ - ____ -1,. I UVlti XUWUW WVUiM UiU MH66W4V.W VW — — —

is not Ph^ omenpa . the I bond market and toe stock index futures market least -needed

Two other issues, however. Defence Ministry goes back as
bear further examination. The long as anyone can remember.

I impair the Treasury’s ability to wiU become a speculative binge (shares were heading for a two-

orderly trading in toe stock But toe eEcfaanges_ are^uh- . ' :n~ n PT ,l«W - ~ ;

i ' f . h ... n T-. daunted- believe . teebbang eg -are platmiQg* ►

Officials iftw» the Comioototy toat stock index titans wHl JSJHSi 'jfiSSSk- iroK- V

wmen does regulate stock index vestore . need a way to protect . rii.: -• vnrt? :

Aihmc AinwMir aim- n««y) in tliua^tnAnW **“**.• 1 VCW IOrR,._. - .

UWU iUIUl Cl CAdJUUldUUU. 1UC IUU£ «u> OUJUITC w«ru 1WM H I W W. 1 ,- Aoht

first is toe business of the But if toe Government wants m ^ I ? n |. L < v7^ n? g ?u ■ ..ni.
alliance. It is not self-evident better defences, it ougrt to pur-

that Nato is functioning very sue better vrays of controffing f** ra ' proWeB 2? ( |J?Z^- 1 J aij
well There is the matter of the costs. • b 1 ®*™ ■ieBewy.... AM

monase its trflfion (mUlion rather tiian a tool for bona /ide ' year low even as they spoke), futures directiy, also voiced themselves in toese torbident
TTTfllionl doflar driit hedgers. Moreover, it would impair toe their support. ~ times, hot because toe number

. permission ■ to" trade sttotedices: -

Tax distortions
in housing

known as “delivery”. All index futures is toat they are a
futures, be they commodities or thinly disguised form of
fin-anHai, provide for delivery gambling: anyone who “bets’*

flnaTtrjai , provide for delivery gambling: anyone who “ bets ” cratic chairman of the commit- have been times when a short-
of a given quantity of toe correctly which way toe stock tee, said: “At toe heart of our age of Treasury bills or com-

Mr John Dingell, toe Demo- to squeeze the market. There institutions will ever - use , The futures -industry i«VA|so ;

underlying asset at an agreed market goes collects his win- concern is the proliferation of modi ties threatened

date. In toe case of interest nings in filthy lucre rather than stock index futures and options delivery and brought

rates it is so many Treasury wholesome stocks and shares. and their effects on capital profits to . those, . ■

bills or bonds, or bank deposits: While pure speculation is good formation. It is impossible to cornered the jnarket.

cratic chairman of the commit- have been times when a short- interest rate or - ; currency vlobking ahead tb-tite opetei^of
tee. said: “At toe heart of our age of Treasury bills or com- futures, the- number of share- • trading- in- options, dn : fintejBfaT
concern is the proliferation of modities threatened to disrupt holders is oyer 30m. . Only 10 v future's. ^ ”, Thieve Will 1 give

bills or bonds, or bank deposits:
in currencies so many dollars 1

stock index futures and options delivery and brought enormous P* r cent needjake toe jrfunge investors. even -tedhe' levertgB
and their effects on capital profits to. those, .who had for trading- to. soar. Non-dealer and ffexihility^lo ipecufete'or

worth of sterling, D-Marks and liquidity. U.S. futures regula
so on. tions require exchanges to prove

for a market because it provides overstate the danger to investor . one can corner the cash market they claim.

But no-, participation iis already strong.

hedge in ; ; toe 1 teodt .-.Srictex
marke^' . lfeere is evmr a - : ' pro-

liquidity. U.S. futures regula- protection and market stability Provided the stock indices have Down on the exchange' floors posal; for an “ index value con-
tions require exchanges to prove that is posed by a highly lever- a broad enough base, the danger and along Wan Street, toe talk tract,” . which neithef expites

that new contracts also serve aged and highly complex instru- of manipulation is also small, is- less about toe rights and nor is deliverable. The- sceptics,

an economic purpose, such as ment such as a future or an Few people expect Washing- wrongs .of stock indsc futures who dcutof that toe market

h edging or investment But In option on an equity index.” ' ton to crack down pn stock than which are best; and hasp, needs _ati - these ■ weird .and

But stock index futures, whose that new contracts also serve aged and highly complex instru- of manipulation is also small,
value Is determined by widely an economic purpose, such as ment such as a future or an. Few people expect Washing

„ followed market indices, have hedging or investment But In option on an equity index.” ton to crack down pn stock than which are best, and hdyr. neec

TWENTY years ago private in- ceiling on mortgage relief; as complications. Traders toe end, regulators were per- But market regulators who index futures. But the publicity - toey should be traded, v. wonderful things, are etfll,

dmduals held broadly toe same Shelter’s report points out, the ^ ^ expected to deliver suaded toat there was no way testified at the hearings begged the hearings got reinforced Of the three which now. have iteratchi^ thrir heads over that
proportion of their wealth in average new mortgage was one ^ of the 500 shares round the delivery problem, to differ. Mr John Shad, toe popular scepticism. The finan- a track record, -each box one.
land and dwellings as they did about £15,000 In 1881 and the

is company securities.

average mortgage outstanding

By the mid-1970s, according is around £8,000. All told, xnort-
to the Diamond Commission, gage relief will be worth about

they held twice as much in the £327 for the average mortgage
form of land and dwellings and holder this year,
half as much in toe form of public sector
securities. wn c

Men & Matters

Public sector housing has
been similarly subsidised. The

Much of the explanation for tectoequer and

this none too healthy change
in toe pattern of . investment

rate subsidies to council tenants
in the current financial year is

preferences of individuals lies estimated at nearly £lbn, or
in the quirks of the British tax £206 per household. But the

Oliver returns
for more

Parsons, Britain’s man at the stable model and managed to
United Nations, was offered and get it patented. The result: a

mind?

said.

’I got better,” Skid all

accepted the post. Everything company

expects

system.

HUlS su , bsi - dy h 5 s been declining in ^ fox with red socks has

numerous reliefs on a wide and relation to reliefs on home i j one again Sir Oliver Wright, f"' 1 u,,, “ "** ! ,c 6 ? ,,u S l va “*'
arbitrarily chosen range of ownership because of the sharp I man m Washin£ matters in toe Security

he did during the Falblands
crisis strengthened his claims.
Not only was he good at calm-

gene rate sales of SBOm in 1982,
compared with just $9.4m in
1979.

Warne off

assets and liabilities.

council

There is a growing consensus rents, which have given council
outside Westminster that home tenants an added incentive. to

^S t ^im I <SntSnhpr Council, but his succinct re-

iwed despatches were just

' _ w ,__ j One of top first jobs toat John

Apart from sluing and tennis. Warne dld at ^ 0ffic8 gf

ownership enjoys more than its buy their home from the local
fair share of tax relief and toat authority. Moreover the temp-

os mark with the Tories. He V, *«!

was Lord Home's principal what^e Inner Cabinet wanted

CouncU. but his succinct, re- Head is also keen on morkel- Trading in 1979 was to negotiate
laxed despatches were just ing. but he has no plans for any ^ „ he accouxrtancy profes .
what toe Inner Cabinet wanted startling innovations in toat over ^ relaxation of .re-

yjine

Men &/ Matters

nnmT But * e crisis made him with Prince in what he des- ^s*^'
loS" determined to retire. So. he wilL cribes as a fatherly consulting h 1 ^

botoy. Instead, h. ■ will remain 5toS«fWSsK5 3SS-

haphazard fiscal largesse is an tation to exercise that right is
important cause of the ineffi- not strong for those living in

raency of the housing finance urban ghettoes.
system in this country.

So much toe better, then. Investment
toat Shelter, the National Cam-
. paign for the Homeless, identi- . The biggest problems

with him in IQftl UCICIUUUCU IU ICUiC. KW-iic Mill.

SS S 5Sh7 t ^JS “ "ft The- next front runnera were
But Wright stayed on in c . „ hn

cribes as a fatherly consulting
role.

He has firm ideas about what

Sir Hamid sir Michael Palliser, who re- He has firm ide
2S5f P J2 ST4i?SS tired as Permanent Under toat will involve.

Secretary at the Foreign Office to keep the company stirred up,
nS^v im f^laehan ^ Falklands crashing and rake out its ashes," he says

^Sder?9^?KS •»— I -- 1’-; S?" eomeed.et ttaeetenidsly.

on as adviser to the Cabinet

fies this as a prime target for housing, however, are concen-

to decide in 1975 that he was

attack in a report cm housing tented ta toe _ private rented J {“f? Office, and Hugh Thomas, the

•mJ tha .annamn m.hlicW tkia SeCtffl*. wtllptl lnnhutM nnp i n I social democrat government to _t,„ 1 *,^1 «„«■ ^

and toe economy published this sector, winch includes one in
week. Its authors rightly argue eight of all households. There,

toat homelessness and bad toe tenant enjoys no direct
housing will not be eradicated subsidy. The landlord, meaxt-

t government to
Ambassador in

historian who started out a
socialist and is now a high

without a fundamental reform while is penalised by toe sys-
of housing finance. tern, of * fair rents ” which are

a ou * a Major miner *»*

Bonn. soaalist and is now a high J _ Accountants in En^and and

Now Wririxt has been Tory. But Wright was the per- Norman Siddall, first nnning Wales as its seerctary-doagnsste,
u^d f^SireSrot e^er ev^ to get the taking ovm-fo^ at the begto-.

cuaauiung Hrj^gy weren ^ especially dif-
ficuJt . negotiatious f ,, Waroe
" and rm Pleased 1» see
my joo is -tjjjyt pyjes are now in

operation." Particularly since he
ne sa ^ s wiH soon be atimrhastering them
from the atoer side of the
-— fence. ~

Warne. who is 55, vriU shortly
Join the festititte of Chartered
Accountants in England and

1 WA S

Exacerbated

Mortgage relief, whirii is ex-
. pec ted to cost the Treasury

nearly Sbn in toe «Srart tonte contlnae to enjoy sobstan-

while is penalised by toe sys- plucked from retirement to re- placcs _ An d he has tonec
tem of * fair rents ” which are present one bastion of conser- socks,
supposed, quite iUogicaBy, to vatism in another. And for the - - '

take no account of scarcity. second time, toe man he re- _

The result is that rents are gf*** 6 “ Sir Nicholas Head Start

P ™ Sty . e . I sve, y differ-

rial teatised nr nnitai ent Henderson’s mixture of something irritates me.

places. And he has toned down job. was At Home to toe Press ning of next year.

yesterday in Hobart House, the Warne is not an accountant.

National Coal Board’s gloomy IBs whole career has been spent
headquarters on toe fringes of in the Civil Service, latterly as

T TWtilAn'f m m nv* Ualnrotno ftonrihr t/i Ciw d . am »

London's smart Belgravia.

deputy to Sir Gordon Borrie,

Most of his predecessors f^r trading.

tial realised or naner canital aenaecson's mixture or sumemiug

financial _year. is not toe only ^fitetothe orivaS^ntSS. languor and steel made him a to design something that works

something irritates me, I like were men whose livelihoods ^ K oe drffioilt to

Lr.

*V«d

profits in the nrivate rented sec- wnguor ana steel raaae nun a to aesi
?L m S n ifSS media ^triumph te toe^fast and better.

owners. Exemption from capital

gains tax on the sale of houses “ 1 ^ 5 ®

had an estimated cost to the

as they are forced to provide
toe tenant with an income

exchequer of £2.4bn in 1980S1. • “

a „4 subsidy. Small wonder there

loose early days of* the Falk: So says Howard Head, and a marketing man. Lord Robens
lands crisis. Wright is a more his impatience has made him a a politician and Sir Hubert
florid personality— large and great deal of money. In 1969. Holdswprth was a hamster who
craggy faced, bushy eye- he cleared $4m when AMF became known as the " miners’
browed, mixing bonhomie and acquired an aluminium ski KC.” The first NCB chairman.

had depended on having a way s “ WWto ’

■with words: Sir Derek Ezra was . 13311 _ Without COTMhg la grasp

VVAUfl tIVlUO. uu utl WWOrnJ ' .Ul.. ’ f ^ ”

a marketing man. Lord Robens «“ ^ andwts-

a politician and Sir Hubert accoaraacy

Holdswprth was a barrister who p *2E? s *f*V ■ .

enjoys further privileges virtU g^ r no Qew investment to browed, mixing bonhomie and acquired an aluminium ski

r i a ^ e f to f ^ftL f^; KTrentedwSJSStioS 3 unnerving laugh. He busmess w*icfa he had dm

vestment, to the extent that . . . is not a social diplomat, but a loped. Since . then, he has

Bos main job will be to en-
sure that the Institute con-:

=v* ££, BM M taSTSS l n i r tts t LS'^, 5 TSS

ha S owner and only James Bow- ""PfiLSE

, . , _ - . ; u H u, j . .. .. .. I is uwi « buuu winuiuai, uui a uu*-.v . vuu v«u(»

house purchase does not attract trf tto r^msihuityfor I which is why in designed and. developed the man, chairman from. 1956 to

tax on the Imputed rental toe housing finance muddle rests

income on the house.

with politicians, both Conserva-

Boxu) he had the nickname of Prince tennis racket — the one
the Old Fox. He Is also remem- with tile oversize face — which

wniie res mem Decs wrangle over
such thorny , issues as current- \
cost accounting. i

— . - .. 44,,- ._J T ,k«.. U._ A r I uiu ru*. oc u auv icrnciu- niuj uw UTWIOUA,

. Pjse subadies are arguably Sf •JSSSS’JSSE 'eSFZlSZ bered there, for his bright red in toe space of a few years has

inflationary. They are certainly tool long courted would-be home flashy shirts.

jf .... A 3 , n um ore tmth tavnampc’ mimm, I ““rr 8 * J ..

inequitable, in that they direct m ° ney ‘ He has done all sorts of M the UA market Now that earth directness so often asso

financial^ assistance to many of ^ « *mpOTomtttat toe govern- things in his 61 years— Royal business is being bought .by dated with eogineers. -He was

those who are least m need. ““‘ SMtoa resist toe tempta- Navy; dealt with Northern Chesebrough-Pond, and Head’s clearly none too pleased at

And toe inequity has been raise szp,o«r ceiling jraland, which should be use- share of the proceeds could be finding himself described as a

exacerbated by inflation. - before the ^ four UE.-IriSh worth around $37m- ' stop-gap / temporary / ^art-

grabbed 30 per cent or more

1960. started out as a miner.

Siddall, who is 64, has. been
appointed for a year only, has Jom today
a good deal of the down-to- “" a .

Just as. well we get trice as

dated with eugiueers. ■ He was n* 0 ** ' “ow for standing stiH,"
clearly none too pleased at my ton dmer remarked te a
finding himself described as a cabbie as we_ Waited,

Negative real rates of
interest have, until recently,
meant toat depositors with

stop-gap / temporary / short-

nart . AlawH.n , iUl Wllil uic imui ua-uiui nwui wuuuu W »w|r&Bp / isiu|«iaij »• ouv» ,

horsemen who have been Head, who is 67, 6 ft 4 in tem chairman m yesterday's

sunpiy increase me muooie, TBhimma nn *«n ifU dnoK hhe smtn mht/ TiPiDcnanorc ind Tw r nw a tat

squashed in one of London's
an terminable jams yesterday.. !.

aipty uid^ase me muaoie. whipping up the Republican tan, and shaves his scalp. every newspapers and he revealed 25 J2£ '

Shelter puts a cogent case for cause; economics; South Africa morning, explains that his two that he had first been ached to "*“ 1: “P * *** weeks

building societies, who include a more neutral tax stance, and Berlin. But what be is best sporting creations came about take on toe job at -the. end of

many of the less well off. have which would have the advantage remembered for in West Gen- because he was unhappy with last year. He had been ill at

effectively been subsidising of increasing the tax base as many is . an Oscar Wilde pro- his own performance with toe time— after a heart opera-

ago, the charge for writing

subsidising of increasing the tax base as

those who bought an Inflation- well as reducing the distortion 1 duction he staged; both he end existing equipment.

last year. He had been ffl at 1®*

the time— after a heart opera- f? Jjf”5 - €8-t 2S? i
lion— and be turned the offer ere™* that taxi drnrer E «id |

For further mfonriaripn; " 2v”- ; > >-■ ■■

The Rioja Wine Information Gentry ’ ? "

140 Cromwell RoadXondon $W7^4HA, .C { •;

proof asset on cheap borrow- between bousing and other [ his wife act

JBLLUK CUUiyiUGUb wu uc LU1IICU U*c -A- |U-_- J.— I.... tlri.

His . wnventional ifennia down. But he was approached durin *

r~ ; . — •->***£. VLUC 1 i uia Will, avb ruo ■ T-tfu, AtrilMK

forms of investment. It is a case I Wright hardly featured in racket k^t- twisting in bis nanfi again in April and this time he weefi 6 " UDe

These inequities are not to which politicians in all parties J the ante-post betting on toe when he hacked af the ball, so accepted.

nip.h mitiiratprt hv Thp £211.0(10 should eiup spn'mit attantinn 1 e;^ A u- ano-r and TnnrP What -

much mitigated by. the £25,000 should give serious attention. Washington Stakes- Sir Anthony .he designed a bigger and more What made him Change bis

Observer

- ' ; ‘ • . '' ' ' f i: v

r-'-r ; Pf./--a

Financial Tunes Wednesday June 23 1982

J

OVERSEAS STUDENTS

I'-c

The cost and benefit to Britain

By Malcolm Rutherford

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A ] " 5 on around

lie, field of higher education

wtuch mirrors ti>e wider debate
to the country about how far
Britain aroald play a national
or an'lnternational role. It corv-
cents overseas students.

1%e number of overseas
students receiving higher edu-
cation in Britain m 1979-80 was
83^500^ In 108CMS1 it was just
oyer 1 3.000. The provisional
estimate for 1981-82 is around
62,000.

'Hie evidence suggests that
the decline is the dixecr result
gf. ffi e ' policies ■ of successive
British ' governments. These
policies were designed to save
relatively small sums of money
and- — to put it generously —
were perhaps touched by a fear
that overseas students might
be crowding out the "British.

The real question is whether
the decline matters: but first, a
little, bit of the history.

Overseas students used to pay
the same fees as home students.
Then, in the mid-1960s, the
Labour Government introduced
a differential making the over-
seas students pay more. The
measure had little effect, how-
ever, because inflation and the
weakness of the pound meant
that the real cost of the over-
seas tuition fees soon began
to fall again. Thus the number
of overseas students continued
to rise.

In the mid-1970s, a new
Labour Government had an-
other go. Not only did it raise
tile fees again: it also sought to
limit the numbers by introduc-
ing quotas on the overseas
share of the student population.
To be fair that was at a time
" when ft" was widely believed
that'fhe number of home stud-
ents seeking higher education
would go on growing— a quite
different climate from today.
There might lust have been
something in the crowding out
theory.

Yet the idea that whenever a
government wanted to make
savings in public expenditure
it could charge more to the
overseas students seems to have
become entrenched in . the
Whitehall' machine. The Con-
servative Government elected in
1979 almost immediately . in-
creased the" fees again and went
on to introduce what are known
as full-cost: fees in 1980: that
means no more, subsidies.

This time the measures have
begun to work, as the -figures
above suggest. -The tangible
benefits to. the - Exchequer of
the move to full-cost fees , are

.ft .--

. - * TievQt Humphries

Meeting or nations: a mix of students studying at the London School of Economics

put at around £170m . a year at
1982-83 prices. But what about
the intangibles?

For a start we should dismiss,
or at least remain cautious
about the steel mill theory.
The theory goes that it pays to
educate overseas students in
Britain because sooner or later
they will go home, become
Minister of Planning, Chief
Undersecretary or whatever,
and order a steel mill from this
country.

It is remarkable how many
British industrialists seem to
believe this, but there is no hard
evidence that it is true. The
case remains unproven either
way.

Steel mills are probably sold
either on merit or on credit. Yet
there are other reasons why it
might be wise to encourage
overseas students to come.

One is an obligation from the
past which it would be blind to
overlook. In the days of Empire,
Britain deliberately modelled
the institutions of its overseas
possessions on its own. Some of
those now independent countries
still look to Britain today, per-
haps especially in education.

This is true even more of the
small er countries. 1 The British,
for example, never built a
university in Cyprus. Thus some
Cypriots still tend to look to. the
UK as the natural place to go
for higher education.

A similar tie seems to have

been developed with Malaya.
In 198941 Malaysia came top of
the list in supplying 16.3 per
cent of ail overseas students in
Britain. Its present Government
has reacted harshly to the rise
in fees, and in that case there
may be some trace of a trade
effect; (Malaysia is incidentally,
the duly major sending country
for which Britain is the princi-
pal host)

Joint second on the list were
Hong Kong and Iran, each with
8.7 per cent. Next was Nigeria
with 7.1 per cent. None of -those
are areas which should be
lightly neglected. For even if
the steel mill pheory is invalid,
there is something to he said
for having people in those
countries who know Britain
and people here who know
them.

lit is no* as if there is no
competition. Britain is by no
means the largest recipient of
overseas students. There are no
up to date figures, but in 1978
the league table was headed by
the U.S., followed by France,
the Soviet Union, the UK West
Germany and Egypt By now.
West Germany has almost cer-
tainly overtaken the UK
. The comparisons with France
-and Genmany are those that
matter since their population
sizes are similar to the British.
In this, as in so much else,
Britain seems p have fallen

behind. The reason is not in
this case .that it costs a. lot of
money, for the savings are
quite small.

Yet Britain has certain
advantages which' could be
exploited. One is language.
English is, if ultimately by
courtesy nf the Americans, the
language of the world. (What a
different place Britain would
he if the UK had chosen to
speak German or French*)
Students want to come here
because they have already
learned it and will continue to
need it. -

They also seem to admire the
British educational institutions,
and not just for the teaching of
medieval history. The most
sought after courses are in
engineering and technology,
science, social administration
and business studies, subjects
on which the British do not
automatically pride themselves.
In J 979-80 engineering and
technology accounted for over
30 per cent of overseas students
at British universities.

Again, tins admiration
should not be lightly dismissed.
The country should play on the
virtues k rs considered to have.
Cultural and educational policy
are part of foreign policy, or
ought to he.

Not least, there is the point
that advanced education,
scholarship, research cannot

Letters to the Editor

Don’t turn your backs on accounting for inflation

From the Finance Director,
Imperial Chemical Industries

Sir,— Like most of ns, I am
critical of one aspect or another
of the various * Attempts to
account for inflation, including
SSAP16 (current cost account-
ing). Nevertheless, I read with
concern some of the arguments
currently being put for the
withdrawal of this provisional
standard.

In particular, those who say
that GCA has done and will do
nothing to help companies
manage their., businesses better
are exaggerating. ICI has had
a strong array of management
accounting tools and a strong
cash flow awareness for many
years. . Despite this, both ex-
-perienced management accoun-
tants and many business man-
agers have learned a lot about
the relative strengths and weak-
nesses of our businesses "since
we introduced CCA internally.
They have also been prompted
to try to react more quickly to
ti» impact of -cost increases.

Historic profit reports on
their own, even with variance
analysis, etc, were misleadingly
reassuring In weaker busi-
nesses. The absolute measure
was inadequate. Some alter-
native . is clearly needed, and
while .there .are problems with.
CCA as it stands, it is clearly a
very useful additional measure
for business purposes.

Despite not having a direct
accounting background myself j-
I would be astonished if the
members of the leading body
among those responsible for
accounting standards in this
country took a giant, step back-

wards by voting to withdraw
' this experimental standard
now.

Alan Clements.

Imperial Chemical House,
Millbank, SWL

From - Mr B.. Whiting. "

Sir, — I have followed with
great Interest the excellent
letters on current cost account-
ing published over the last
three weeks.

One important point, however,
seems to have been omitted.
CCA is simply an unrelated rag-
bag of adjustments to historic
cost accounting. There are four
separate adjustments: cost of
sales: depreciation; monetary
working capital: and gearings —
placed in their order of useful-
ness.

The cost of sales adjustment
serves to charge materials etc.
consumed against profit at the
price of the material when it
was consumed, rather than
when It was bought. Except for
companies using basic com-
modities or foods with seasonal
prices, this method seems
sensible and is widely adopted
in management accounts which
attempt to measure divisional
performance.

The extra depreciation of
CCA requires, as well as an esti-
mate of asset life, an estimate
of replacement cost and a
choice of depredation system
(fixed instalment / reducing
balance/ re viva] of assets fully
depreciated). For shortlife
assets such as vehicles, the esti-
mates are not too difficult to
make,. and the result is credible
and useful; for most high cost
long-life assets, such as a rail-

way or reservoir, the exercise is
totally meaningless.

The monetary working capital
'adjustment lacks a dear defini-
tion of “ monetary *' and “ work-
ing capital.” The . possibilities
are endless in the treatment of
bank and cash balances,
creditors of a capital nature,
the indices to, be used, seasonal,
fluctuations, etc. It is wide open
to window-dressing and has
nothing to do with current cost.

The gearing adjustment is
“ the end." It is illogical, con-
ceptually unsound, an appor-
tionment of the other
adjustments to which, it Is not
in any way related.

For management accounting
only about one-and-a-half of the
adjustments are relevant. For
management decisions neither
historic .cost nor the CCA
adjusted version is likely to be
very relevant — the main
factor should be the future
opportunity costs arising from
the decision. There are dif-
ferent costs for different'
purposes. No one set of costs
is “ right ” for afl.

The American approach
seems to have been the most
sensible. Under their Federal
Accounting 1 Standard No. 33,
summarised income statements,
for large companies, -are shown
on a current purchasing power
and on a current cost basis (ex-
cluding our MWCA and gearing
adjustment) with a separate
figure for “gain from decline
in purchasing power of net
amounts owed.” You pays your
money and you. takes your
choice ! Why not here?

Edwin Whiting.

Manchester Business School,
Booth Street West,

Manchester

Trade anions and
the EEC

From thi Chairman,
trades Union Congress.

Sir,— I read- with some
astonishment John Lloyd's
account (June 14) of & report to
be considered by the TUC
general council. The report
concerns the attitude of affili-
:.ated trade unions to the TUC’s
■ policy of withdrawal from the
Common Market without a
referendum.

Mr LJpyd erroneously believes
" that because few unions replied
to a -circular seeking informa-
tion, this indicated a move
towards" favouring continuing
membership of the EEC.

Nothing could be further from
■the truth. The majority of
unions recognise that the TUC
policy as determined at last
. year's conference is the correct
one, particularly in the light of
the recent debacle Britain
suffered at the hands of its EEC
partners with regard to budget
repayments and agricultural
prices.

Reporting documents out of
context is a very misleading
journalistic practice. I do
sincerely hope that your readers-
wiH understand the determina-
tion of the TUC to campaign for
the withdrawal of the United
Kingdom from the EEC. This
position is also in line with the
policy of the Labour Party.
Alan Sapper,

General Secretary,

Association. of Cinematograph,
TV and Allied Technicians,

2 Soho Square. Wl.

The Lloyd’s
BiB

From Mr J. Burrows

Sir.— The Lloyd's Bill,
currently before a House of
Lords Committee, needs to be
enacted" quickly if it is not to be
lost

A petition prepared by non-
working members, , which I was
asked to present; provided for
divestment and this is now con-
tained to the current BilL This
gives .Lloyd's the power and
confidence it needs to- control
the broker -and -leave- the active
underwriter, free to. act on his
own judgement, and wtfhout
conflict of interest
' I have recently written to
■ just •• over . three hun dred mem-
; hers, "whose addresses I could
trace, and I", have had over one
hundred, replies so far, agreeing
the need for the new BiB, but
considering the -existing -single-
electorate -should :-be main-

tained so that all underwriting
members of the society, having
as they do, identical interest,
can continue to nominate and
vote for those underwriting
members who are to serve on
the council and committee of
Llovd’s. A simple majority
could then, determine council
decisions, and the need for 1 -
special resolution df separate
-majorities would no longer be
required.

They also agreed that the
society should not be exempt
frpm liability .-in -damages- at
the -suit of- members : of the
iioyd's community, and that
such protection -te -Lloyd’s may
-require should be by policies
of insurance. '

For a - responsible council
this would remove the fear and
worry as to the consequences of
their decisions, .made, in good
faith without the precedent of
placing the society “abo*e the
law” "in its dealing with the

Lloyd’s community. A demo-
cratically elected ‘council would
ensure that its -authority is re-
spected by all members

The . need for. ' objectionable
classification as .an. external
member of the society would be
removed. Personally, -I cannot
be both “member? and "ex-
tecftal" at the same time with-
out conflict, of interest I could
never therefore accept being
placed on a register of external
members as the Bill provides.
If . it means r would have' ta

resign^- so .Jm'ltir;

Simple amendments to the
Bill now, as its stands, to delete
immunity and retain. a". one man
one vote system, but by postal
ballot, ishouTd receive, the sup-
port of all. T&e.BOJ could. then
surely be enacted to provide a
strong self-regulated society of
Lloyd's for the future. , "

J. D. Burrows.

Copyhold,. Burn, Pulborough,
West Sussex.

Points of
view

From Mrs M. Cooper

Sir. — -The Financial Times
appears, to be the only British
newspaper which has con-
sistently reported, the FoUtiands
issue with total integrity and
intelligence, and the fact that
you print criticism of ' such
coverage (June 18) merely sup-
purls this evidence.

Margaret Cooper.

Home Farmhouse,

Oxton. Notts.

Not left-wing
rebels

From Mr A. Favlds iff P
Sir*— The headline to Elinor
Goodman's piece, " Four left-
wing rebels lose front bench
jobs" I May 25) was totally
erroneous. To describe me and
and Tam DalyeH as “ left-winff ”
shows a surprising unawareness
of the facts of life in the House
of Commons:

Andrew FaukJs-
Bouse of . Commons,

SWl.

have International bound-
aries. Imagine a student of
economics who reads only
British economists. In this
sense, the mix of home and
overseas may be working: in
198D-S1 overseas. students
accounted for 36 per cent of
all postgraduate students in
British universities.

The Overseas Student Trust
has just published a study*,
from which most of the above
figures are taken, putting for-
ward a comprehensive policy
for the future.

It is not the best study In
the world since it relies rather
heavily on the steel mill
theory*. But what it says is that
for £35m a year, of which only
£15m would be new money,
considerably more overseas
students could be enabled to
come to Britain.

It proposes an awards system
to which all the government
departments involved — Trade.
Education and Science and the
Overseas Development Admini-
stration — would contribute. It
is precisely that sort of co-
ordination between the various
departments that has been lack-
ing in the past.

The money would come
largely out of a reallocation of
existing budgets, some of it
from overseas aid. Some of the
richer governments which most
depend on Britain for overseas
education, such as Hong Kong,
would be asked to contribute.
The full-cost . system for Over-
seas students would remain and
universities would set their fees
according to their own
economic circumstances.

The Foreign Office Is
sympathetic and indeed had a
hand in the making of the
report, though whether that is
a recommendation in today’s
climate is another matter. It is
not clear whether anything will
be done about it

■ Yet the most important point
is this. It is a question of what
kind of people the British want
to be: insular or international.
Having overseas students who
want to come here to learn is
both a tribute and -a benefit,
even tf the latter cannot be
quantified. British higher
education would be intellec-
tually poorer without them. So
ultimately would British society.
We also need them to teach us. ,

• A Policy lor Orartoos Students. Pub-
lished by the Oversees Student Trust.
1* Denbigh Street. London SWl. £5
(plus £2 'poet end packaging).

SDP leadership

A contest about power,
not policies

By Peter Riddell, Political Editor

THE CONTEST for the leader-
ship of the Social Democratic
Party is curiously old-fashioned,
for all the novelty in British
politics of a one -member-one-
vote election for a party leader.
There are no daily opinion polls
predicting the result, nor is
there any scope for intensive
canvassing of HPs or trade
union leaders.

In short, no one knows who
will win — Mr Roy Jenkins or
Dr David Owen. SDP MFs. and
pundits may believe, that the
contest is more open than it
was three months ago because of
Dr Owen's prominent role in
the Falklands crisis. But they
can only guess how the party's
65.000 members will vote.

The campaigning consists of
heavyweight articles and
speeches — and the occasional
television interview — without
any razzmatazz (no ” Roy for
King " or ’■ The Doctor Knows
Best” buttons). The contest,
which lasts until the end of
next week, is none the less
vigorous as the initial pious
pledges about no public cam-
paigning have been dropped.
And the supporters of each
candidate believe passionately
that it matters who wins for
the future direction of toe party.

Dr Owen himself has summed
up the choice. In an article in
" Alliance ” magazine, he- has
said that “the differences are
more of generation and style.
One can make far too much of
distinctions of Left and Right,
and even of radicalism. The
area of possible difference is the
emphasis we might give tojbe
nature of the relationship with
toe Liberal Party.”

The contest is really about
attitudes to power, not policies.
Sir Jenkins has argued for
close links between the SDP
and the Liberals, operating
jointly as an Alliance with a
single leader. He has even
hinted at even closer ties, if they
are wished, after the next elec-
tion. The Jenkinsite case is
essentially that there is room
for a three-party system, not a-
four-party system.

Dr Owen stresses the separata
identity of the SDP within the
Alliance, distinct from the
appeal of the Liberals. He
argues that a blurring of identi-
ties would narrow the appeal of
both parties. He believes that

if proportional representation
is introduced a four-party
system would provide flexibility
for the formation of necessary
coalitions. To him, the essence
of the 1 Alliance is in showing
that two parties can work
together.

These- theoretical arguments
are related to toe personal posi-
tions 'of the candidate. There has
always been an understanding
(in Lhe sense used by Victorian
novelists) with Mr David Steel,
the Liberal leader, that if Mr
Jenkins became SDP leader he
would also become leader of toe
Alliance, since at 62 he is much
the older and more experienced
man. But this would not apply
If Dr Own. who at 43 is roughly
Mr Steel's age, won.. It .is
argued that the Liberals would
not accept that their leader
should be subordinate to Dr
Owen. •

The Jervkinsites argue that toe
election or their candidate is

Labour’s continuing
problems show that the
SDP leadership is still a
job worth fighting for

-therefore essential to the future
harmony of the -Alliance which
would "be damaged by Dr Owen's
victory. The JenkinSites . also
■dispute toe view of some of
Dr Owen's supporters that there
could.be two- separate leaders
until after too next election.
They also reject the idea of an-
Alliance leaders who -is not toe
leader of one of toe two parties
(say Mr Jenkins if he loses) and
they argue there must be a joint
leader who is the Prime
Minister candidate. The Owenlte
reply is that their man knows
the Liberal Party well from bis
West Country background and
has worked closely with Aft-
Steel at Westminster.

* At heart, the outcome lies in
an assessment of personalities.

The Jenkinsites argue" that
their candidate has unrivalled
experience at the top and is the
right man to tackle the economic
arguments that are likely to
dominate the next election. They
say he has • the breadth of
appeal to attract former Con-

servative, as well as former
Labour, voters which are needed
if toe Alliance is to make a
breakthrough between a declin-
ing Labour Party and a recover-
ing Tory Party.

His weaknesses are an
apparent remoteness and lazi-
ness, - though when roused he
can be extremely impressive, as
in toe Warrington and Jiiilhead
by-elections. Mr Jenkins has
also failed to re-establish him-
self forcefully at Westminster
.In toe admittedly difficult cir-
cumstances of the Falklands
crisis.

Dr Owen's supporters main-
tain -that what is needed is a
man of energy and single-
mindedness, as well as a proven
record, who is young enough for
toe long haul required to estab-
lish the SDP and to provide .the
parti* with a fresh and “radical”
approach. His weaknesses are an
apparent arrogance and the
fierce antagonism which be
arouses among some people who .
have w-orked for him both when
he was Foreign Secretary and in
the SDP.

The views of the party’s mem-
bers are largely unknown. Some
SDP leaders believe that Mr
Jenkins appeals to an older
generation, those who have been
with" him in the battles over
Europe. For example, he
attracted toe support of toe vast
. majority’ of the first group of
MPs who broke away from
Labour early last year, though
the party's 30 MPs as a whole
are split broadly down the
middle. Dr Owen possibly
appeals more to former Labour
activists, including AfPs who
have joined recently, and those
who regard Labour as bankrupt
of ideas and are looking for a
new “ radical ” approach to
politics.

The bookies and the West-
minster odds still favour Mr
Jenkins, just. If Mr Jenkins
loses, he will not have another
chance. But if Dr Owen loses
this time, he will have succeeded
in placing himself well ahead
of both Mrs Williams and Mr
Bill Rodgers for the future.
Whoever wins has a demanding
task of reviving the party after
its recent- electoral setbacks. But
Labour's continuing problems
show that the SDP leadership is
still a job worth fighting for.

New

The cityis Peterborough. Miy minutes fiom

asuperib newbufldingovedookii"igtlie catfiedml.

The cost is all-inclusive. Rent, mtes and
^service charge!

The last 10, (XX) sq ft is available now.

' Call today and discover howyour business
-could benefit ftom the Peterborougli Meet
• Modem offices in the city centre are also
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Ring John Case on Eneefane432L V\^

ft must be the

20 •

Companies and Markets

Financial Times Wednesday June 23 19S**

UK COMPANY NEWS

Hargreaves | Burnett & Hallamshire boosts profits by 74%

J A JUMP of 74 per oenl in prc- enrutruviion in Pennsylvania, not
i tax profits is reported bv Burnett due Tor completion until July.

and Hallamshire Holding, the He plates that the search for
I fast expanding mining, oil and appropriate commercial oppor-
property group, for the year lunities on a world-wide basis.
I ended March 31 19S2. has to a large extent been com-

REFLECTING AN Improved \ ttHm'liriSS 'J? IvnU^uZ KS?'l£t ”h ^nt^ity' ‘ of !hj

arras s r ; h n d ^ ; sr. •trsj X £is skt? £

. „ Up

£4.2?m in the year ended j t u a record £21. 7m. Turnover was
March 31 19S2. This compares up fruin £9Sm to 1190 98m.

mchidS 5 air * The dividend to shareholders
n mi !« 5 ¥ ? f : «* boosted from 11.25p to 14 P .

.il °J. fiXed a ‘w e t wilh a Rnal of 7.5 p on capital
—and exceeds the previous best ! en | ar „ ed b> a^uisttlon issues.

result of
1979-80.

£4.11 m achieved in

j Mr George Helsby. the chair-
| man. reports tha the profit mix

IWL , J ■ . I . .11 ; lll . SU . I CT JII 1 l - Wld me unfit ! HIIa

e J r h * ? mde o d - ,s par “ aJiy r n between the divisions has been
l £, 2 -‘*P on V ' J v,,h I maintained in accordance with

ftSL °rjP “f. 1 p * r 2 °P share - group policy, with about one half

rrom^219 19m tr* ^Sfem^^ThS uf * armn es earning front mining
l„e, m 1 u -r 4 ®- 9 " 1 - . ^ h ' e activities and the remainder
pre-tax profit— which included a f rom 0 il and properly,
turnround from losses of i

removal of the various delays
and minor setbacks of the pre-
vious year, the establishment of
international operations and firm
indications of national economic

recovery "

The chairman is predicting
further . substantial growth
through the realisation of the
potential . of I is expanded re-
sources in the current year and
beyond.

After providing fur a heavier
tax charge of £7.09m (£1.3Sm1
and minorities of £474.000

£3^626 ^£6'*”s3l1 ,,< * interi?s,f oF , related to a large dragline under

An analysis of the pre-tax I

profit shows (figures m XOOOsr 1
energy — solid and liquid fuel .
processing and distribution and ]
fuel products £1.223 (£1.185): :
environment and construction
mater ials — quarryint* £1.335 ■

(£7771: waste disposal £lt>5 i
‘(£9); construction materials !

£58S i£I31 k civil engineering !
nil (£210 loss): transport ship- i
ping . services — road tanker '
transport and shipping services I

SSriSn : rSSf' 'ri-sr ! • '«■'"« «> III. Unlisted Securi.

smr.K ' ,K 19S0 ‘ S1

iHhi.iinn «■»« ■ i-.fco . .Dialled Ubi.000.

The directors say the group is
experiencing a "greater than

Commenting on the divisions

the chairman ‘says that mining - adversely
produced another highly satis- margins,
factory- performance which
reflected sustained growth in Ihe
UK. Inaugural profits from North
America, and the further estab-
lishment of major international
projects . in the Philippines.

Colombia. Chile and Sourh
Africa, all of which augur well
for the future.

Mr Helsby says that a dis-
appointing result Trom the nil
division was consistent with the
national situation in the
industry. Further ■ ■ market
regression was accompanied hy
pressure on ni a reins in order to
sustain market share.

Arising out of aggressive
marketing and the impact of
several ■ acquisitions. sales
volume increased over last year
contrary to ihe industry trend.

Despite this achievement and
benefits derived from the flexi-
bility of group buying arrange-
ments, the chairman says that
disruption from the severe
winter which was immediately
followed by the rail strike.

affected operating

Progress in exploration and
production in North America
was satisfactory - and was .repre-
senled by certain minor invest-
ments which should produce
adequate profit in the coming
year.

The property division pro-
duced excellent results across its
entire area of operation. The
most noteworthy was in Cali-
fornia where a solid platform of
profitability has been estab-
lished says the chairman.

A number of strategic acquisi-
tions were made during the year
which have either strengthened
UK presence in coal and oil or
provided for further penetration
inln various overseas markets In
coal, oil and property through
local representation or alterna-
tively by way of exports from
the country of operation, says Mr
Helsby.

Capital employed has risen
substantially from £50m to £114m
due in the main to the impact
of acquisitions during the year.

Gearing -has increased to just
below 50 per cent which
■■ although remaining at a com-
fortable level shows considerable
movement over last’ year’s posi-
tion,” says the chairman.

He explains that the increase
in gearing has - arisen from the
acquisition of certain .companies
with- relatively high borrowings,
particularly Band London Cor-

fnef for its rapid-fire acquisition
-policy- Nonetheless, 40 per cent
of the company's pre-tax
advance is from its underlying
businesses and so far. earnings
per share have not been eroded
despite a 37 per cent increase
In the number of B and H shares
■on the market- Still, the Band
London acquisition has been a
disappointment It appears to

poration but also and from the be headed for a loss due to

• ' technical problems plus tbe
weakness in the international
coal trade. -The purchase also
dumped some £i6m of debt on
B and H*s - balance sheet so
capital .gearing .-Is now up to 50
per cent. The chairman is deter-
mined-. to make Rand’s assets
sweat; an axe is hanging over
those bits which kwk unlikely
to comply.- The company says
its -pace of acquisitions is slow-
ing and k now aims to pull
more out of what it has got
Optimists are looking for £30m

purchase of assets and minority
interests . which will facilitate
continued .commercial and profit
expansion in the medium term.
The balance sheet therefore, con-
tains assets, the earning power
of which had not been fully-
reflected in the year’s results,

• comment

Burnett and Hal lams hi re's
profits have gone one way in
the last, year .while its share
price has gone the other. Despite

a 20p gain yesterday, B and Ha pre-tax this year but this pre-
shares are still 29 per cent sumes some recovery in the
below their price a year ago. world coal business. The
This droop is largely, due' to improved dividend gives a yield
the company’s reliance on paper of around 2.5 per cent

Leisure Inds. well on target

tribution £538 (£289 lus- ).

After providing fur lax of
£1.21 m (£622.616). the net profit
came through at E3 06ni (£1.9nn.
Minorities looses amounted to
£20.664 (£51.992) and there was

TAXABLE PROFITS "of Leisure inent of £159.000 on a property
Industries Group were well on revaluation and £38.000 for costs
target at £576.000 for the year to arising from the USM entry —
March 31 19S2 and compare with dealings in tbe company’s shares
a forecast of not less than began in March this year.
i'540.00t» made in the prospectus Slated earnings per 25p share
when the company was .seeking improved from I6.15p to 21.2p

and the dividend is 2.5p net as
forecast. In the prospectus the
directors said ibat 5p would have
heen paid if the company had
been traded on the USM for a
full year.

the total way that L!G perceives:
there will be a range. of a dozen
to 15 items 'lio the 'same way
that there is a range of snooker

OOfield Inspection for USM

BY CARLA RAPOPORT

comment

at S.Sp i5.6pi and nei assets are
given at S4.3p iS3.5pl.

• comment

; ever” demand fur many of its
products — they include snooker
: and pool tables as well as toys —

an extraordinary debit *if • ant * a ‘hl 'hat plans for 19S3-S4 § 0 f ar so g 00< j hut what happens
£526.315 (£52,172). being good- ' jre taking firm shape and that r , ex -^ al Leisure Industries
will on acquisition. • n,fW categories of products are Group. A new product range

Earnings per share are timed ' ^heduled to be introduced at 1S on the way. something that

. Lhe end or the current year. w ,n provide a fresh growth
, In anticipation or furtiier curve when snooker bits a
; growth the group is investing in plateau. But investors are left
; management, buildings and new guessing as to what this founda-
! machinery. turn stone for the future will

Hargreaves lias regained lost j Turnover for ihe year rose actually be. Clues are as fol-
ground with a reiurn to 19S0‘> I from f-±.4Pm to £5. 46m. Tax took lows: li will be a “ sports " rather
pre-tax profit and considerably ' £152.000. against £159.000. There ihan “leisure* 1 produce sonie-
betler performances io road ! were extraordinary .debits of tiling which has an existing
transport, quarrying, waste dis- ; £197.000 mill being an adjust- market but not catered for in
portal and concrete. Quarrying

received a fillip from extra road i . . —

repairs caused lij the severe
winter weather and profits were
up 71.S per cent. Waste disposal
expanded into Sent land and con-
crete products continue io sell
well. But much of the construc-
tion aggregates busines- is wilh
public sector civil eogineeruij
projects and a run down here
could inhibit ruiure growth. The
group operates in low margin
areas particularly for the bulk
of its turnover— distributing oil
and coal. Commercial vehicle
distribution continued to do
badly with further losses, but
the share.- bounced up 6p to
close al 60p where thej yield
S.S per cent, indicating some
way to go.

DEALINGS in ’the shares of Oil*

__ field Inspection Services, an

tables): it will he largely sourced !. international oil services group,
from overseas with limited UK I are expected to begin on the
manufacture and assembly: it j USM on Monday. Some 1.55m
will appeal to a wide age group ordinary shares of the company

and both sexes and will need ! have been placed at 15Qp, r&p re- _ • _ .

limited capital up front from ! senting 22 per cent of its share
L1G. It is not electronic and I capital. raising £2.33m and

valuing the company at £10. 6m.

The five-year ' profit record
shows that sales have advanced-
from £2. 7m in 1977 to £10.4m In
19SL Pre-tax profits :in. 1977 were
£330,000. They increased .some-
what in 1978 but OIS dropped
into a loss Ip 1979. However,

DIVIDENDS ANNOUNCED

will not be a toy. Guesses on
a postcard please. Whatever it
Is. the impact will be limited
this year. Costs of £30.000 or
so could trim profits in 19S2-S3
but the selling season will not
start till 1983-84. Meantime LIG
is still riding high on the

Centre vinciaf Ests-

Charter.- Cons.

Coun try side Props.'. . . inL

Espley-Tyas int.

GEI IntL

Gresham House 2nd inL

snooker • boom.' That shows j there was a- pick up In 1980 and
no sign of abating yet and clearly ; for i9gi. the company showed
the current year has got off to ; £i m at the pre-tax level. •
a good start . If employee levels , The compan y. * engaged
are any indication they have ■
come up from 230 to 330 in the

Hargreaves Group

J. & EL B. Jackson ...inL

Japan Assets TsL -

Jermyn Inv

Leisure Industries^

Current

Date Corre-

oF spending

Total

for

Total-

last

payment payment

div.

year

year

1-7.5

Aug. 6

6.4 .’

14

11.25

2

OcL 1

1-33

4

2.66

7.25

Aug. 12

6.6

11

10

1.54

SepL 10

1.4

— .

3.85

1.5

SepL 2

—

—

2.31?

3.56

Aug. 9

3.56

5.32

5.32

2.6

Aug. 25

2.25

I

3.65

3.75

3.2

5.28

4.5

2

July 28

1.15

3.6

2.75

0.75

Aug: 16

0.75

—

• 1.6

80.1

_ July 30

—

—

—

1.63

SepL 17

1.63

1.63

1.63

2.5

OcL 1

—

2.5

—

13.5

OcL 1

12.5

17.5

16.5

4 VVBAB] rauj u Lliga^LVI iu _

non-destructive testing, inspec- Dividends shown pence per share net except where otherwise statetL

Hambros
net profit
falls to
£15.4m

PROFITS after w* JjJjSIS
the banking ™% 5Ar r.

group. fell from h m

to tbe year ended
1982. after ^ TZOrdin ^\„
down from £4.7m io »■**, |S

ne Th^Sofit o°f a che

SS^M, af toJr eSSd from WS™
to £4.6m but this W-JfSK* on
exceptional loss ^. h £1 ,fac been
shipping debts whKh h*' L on ,
covered by a transfer i
inner resen-es.

The directors state^tbat «
exceptional loss reflects the -
stantial further fati in . w
values and the agreement
reached on the bank s long stanfl
ing Norwegian shipping loans.
The transfer from reserves
been, made good by new banki ng
capital and increased l ^ serr *-,' h „

Other operating profits of in-
group are shown to be down fro
£4.7m to £200.000
minorities, while the dividend,
received from Hambro L'* e
increased from £4.3m to ffim
The contribution from associai f
was lower at £1.9m (£2.1ml an .
gains on portfolio investment-
were down from £3— ra to £I-hm.

Disclosed earnings
exceptional loss was HAP
(14.4p), before investment gainF
and extraordinary items and
14.4p (21.Sp) after.

The directors report tnai
Hambros Gas and Oil U.S. (39
per cent owned) has participated
in drilling 115 wells in the
.An a dark o and Permian basins
with 75 per cent of known results
indicating commercial dis-
coveries.

Revenues have commenced bui
carrying .costs of oil and gas
investments overall exceed
income this year. However, these
investments should produce sub-
stantial future benefits.

The total of disclosed share-

la-- 1 riv months At 1310 3 fullv ! i ion ? Dd h -? at services ‘Equivalent after allowing for scrip issue. tOn capital r h oi dei8 funds increased by £S.7m

tax p/e of under U and yield • f or } he S* 1 1 nd Sas industries, increased hy rights and/or acquisition issues. tUSM Stock. J l0 £ ^3 4m af ler transferring £5xn
. ...I, .... . It also develops and manufac- 5Sm»rial non-recurrine oavment. f For seven monihs to Sent- k j

( taking a full-year pay-out of
5p» of 5.5 per cent U firmly
placed.

develops
tures equipment for these activi-

Further Hazlewood

CHARTERS! ALL

Cbarti-rhall i/omplcted its?
.-H-quisition nf the imrciiasc of
75 per cent of General Oil on
June 21 19S2.

Hazlewood Foods, the fast
expanding pickles ■ and sauces
-(sfoup. yesterday announced two
mure acquisitions for a total of
£1.22ni in new shares.

It has agreed with Imperial
Funds to buy ihe Selby. York-
shire factory of Imperial's HP
Foods subsidiary together with
certain plant and equipment for
£S2«i.OOO.

Hazlewood will retain the 280-
strong workforce of the factory
which makes (he Epicure range
of pickles and HP sauce. HP
will continue 10 market and dis-
iribute ihe output of the Selby
plan'.

"This means we can use our
experience in ihe production end
of pickles while FTP uses its'
marl eling and distribution skills."

said Mr Dennis Jones, finance
director of Hazlewood.

Hazlewood expects to transfer
some of its own pickle activities
to Selby. Earlier this month, it
announced pre-tax profits in the
>ear ended March 42 per cent
higher at £i.42m on sales
57 per cent up at £lS.S4m.

In April it bought soft drinks
- bottling and packaging capacity
from the receivers of Slack and
«::or following the purchase of
Manor Vinegar Brewery in April
19S1.

Hazlewood also announced
the purchase of Kanes Food
Products, including freehold
land and factory premises at
Evesham, from Ken Perrett
( Evesham j for £400.000 in new
shares.

ties. OIS is based in Great
Yarmouth.. Norfolk, but has
operations to Scotland.- the
Middle East, Australia and
Singapore.

Of the 1. 55m shares placed,
i 667,000 are new* shares. The
| balance was sold by four, direc-
Hazlewood yesterday issued a I t° rs East of Scotland On-

5 Special . non-recurring payment
erpber 30, 1981.

I For seven months to Sept- j t0 banking inner reserves.

! An’ unrealised surplus of £S7m,
net. of tax. also exists in the
1 market value over the balance
size. Still, tbe bulk of its sales, j sheet carrying value of the
some 62 per cent, come from ! investment in Hambro Life

the North Sea where prospects j Assurance.

total 465.732 new- 20p ordinary
shares to finance the . two deals,
an increase of 7.3 per cent of
issued ordinary capital. Its
si tares rose 6p to 242p.

Shares issued to fund the lip
purchase have been placed.

Perrett has undertaken not to I the shares.

shore, an investment company
which will retain a 21.4 per c%pt
stake in the company. Technical
Development Capital also bolds
a 24.1 per cent share of the
company: The four directors will
retain a total of 30.3 per cent

are no longer rosy. OIS is
intent on further diversification,
but for the moment it has to
remain a share for the bold. At i
the placing price of 150p, the

See Lex

NO PROBE

and the prospective yield on the ! the proposed acquisition of
forecast dividend of 2.1p is 2 | Bemrose Corporation by Bunzl
per cent - f to the Monopolies Commission.

dispose of about half of its
allotment for 12 months. The
balance is hemg placed.

The shares issued to' acquire
Kanes, with a value of £134,900.
will not he allotted until seven

The placing will raise £860.000
for the company which will be
applied towards increasing
working capital, research and
development and expansion
overseas.

The compaoy has recently

days _ after publication of , obtaioed a *£2. 6m twtract for

Kanes' audited accounts for the
year ended June 26 1982. If
net pre-tax profit is below the
warranted £100.000 the con-
sideration will be reduced pro
rata.

the supply of specially designed
equipment for the gas pipeline
which will Link the Yamal fields
of Siberia to Western Europe.
The ultimate value of the con-
iract to the company is uncer-
tain but the directors state: “Tn
spite of the uncertainties arising
from the sale of equipment for
use in an unfamiliar market,
the contract will be of substan-
tial benefit to the group.”

The company acknowledges
that the price of oil is still
below the level of late 1980 and

• comment

After various delays, OIS has
finally made its debut. Hie com-
pany has some 10 • years’
experience in tbe oil services
business- and is well spread
geographically for a group of its

Torday & Carlisle falls
by 14.6% at year end

A -POOR performance in the UK
but much improved overseas
results are reported; by Torday &
Carlisle. For 1981 pre-tax profits
fell by 14.6 per cent to £688,017,
while turnover rose by over 10
per cent to £14.45ra.

As a result of the merger with
Lockwood Sc Carlisle in late 1981.
comparison with previous years
is difficult. Figures for 19S0 have
been restated for comparative
reasons.

Dr L. Torday. the chairman,
reports that following the
merger, the group is now enjoy-
ing an asset base in excess of
£S.9ra with' a strong balance sheet
showing a modest gearing of 8:1.
Much remains to be done in
consolidating the new group bnt
useful progress bas already been
made.

A final dividend of 4p net per
lOp share is recommended — at
the time of the merger a final
of not less than 3.5p per share
was forecasL The company’s
shares arc traded on the market
made by M. J. H. Nightingale &
Co.

Tax For the year was £130,942
(£103.677) giving a net balance
of £557.075 (£768,656). Stated
earnings per share . were 9.1p
lower at 22.3p.

The chairman says the group's

marine engineering 'subsidiaries
ha'd a successful year, but real
efforts will be needed to main-
tain progress Io tiie current year.

The group's industrial divi-
sions, all of which are UK based,
had uneven performances. At
Elfab-Hughes, manufacturer of
bursting discs and allied process
safety equipment, profits show
outstanding growth and market
penetration Was increased.

The recession in the European
copper foil industry has eased
but final results at the copper
foil division were very disap-
pointing. In ordet to achieve
a division of optimum size, the
group has initiated further expan-
sion which will enable it £0 take
advantage of any opportunities
presented by an upturn in the
market. Current studies indicate
an increase in demand for copper
foil towards the end of 1983 and
more buoyant conditions there-
after.

Looking to the future, the
chairman says the group's marine
engineering business is now the
largest of its kind with the
greatest geographical spread in
the world. “ This is an asset
which we must mobilise by
investment in opportunities and
new products as they occur,” he
states.

Last year was very tough. Just look how
m any of the world’s important economies
were in recession.

Yetitwasthe 15th successiveyearof
growth in sales, profits and earnings for BTR.

That’s very good for our shareholders —
but the special \ r alue of our efforts lies in the
extra contribution we make to the good of
the country as a whole.

Lep makes
progress in
second half

BTR

BTR pic S ilvertown House
Vincent Square London SW1P2FL
01-S345S*IS

A SECOND-HALF pick up
enabled the Lep Group, inter-
nanonal freight forwarder,’ to
finish 1981 with pre-tax profits
ahead at £5. 15m. against Hi. 03m
previously. Turnover climbed
from £61. 8m to £77. 12m.

At half time, the company re-
ported taxable profits down
from £3.45m to £2. 29m but said
it expected second- half results
to show some improvement over
ihe »ame period -of 1980.

The final, dividend to raised by
lp lo 13.. ip net for an increased
total payment of 17.5p (16.5p).
Statcd_ earnings per 10p share
were 51 p (42pj on a ml basis
and 36n (42pj on a net basis,
of £118.000 (£50.000), the

attnhutable surplus showed a
reduction from £2.8Sra to
£2.51m.

Midland Bank
reopens branch
in New. York

Midland Bank, the UK clearing
bank, is re-opening its branch in
New York as part of its plans to-
develop its interest in the 05.

Midland. which last "year
bought a 54 per cent stake In the
San Francisco-based Crocker
National Bank, was -given per-
mission yesterday by the U.S.
Comptroller of the Currency to
re-estabtish a branch in . New
York. Its last branch in the city
closed in 1978.

Mr John Harris, chief execu-
tive of Midland Bank Inter-
national. said yesterday that the
new branch would help Midland
enhance its present services to
its international corporate
customers." . ;

The new- branch "Is -expected’ to
be in operation by -the end of the
year.

that there . have been reports
of cutbacks in orders for pro-
duction platforms for the UK
sector of tbe North Sea. None-
theless, it claims tiiis is not
indicative of the market for the
group's services worldwide.

“ Existing installations require me placing price Of loop, the j Tbe Secretary of State for
increasing maintenance and fully-taxed historic p/e is 19 I Trade has decided not to refer
regular inspection.. Plans are at
an advanced stage for tbe con-
struction of a number of new
onshore and offshore pipelines to
exploit the reserves of oil and
gas that have already been dis-
covered around the world," the
company slates.

Although no forecast 'is given
for the current year, the' com-,
pany reports that business in the
first five months of 19S2 was
“substantially" higher than for
the same period of 19SL The
outlook for the year remains
encouraging, it says, even with
out benefits of the Yamal- con-
tract

Brokers to the company are
PhD Ups and Drew.

This adverusamgrrt is issued in compliance w i t h the ra q r a re ment sof
tha CouncB of TheSttxdc Exchanga.

oilfield inspection
services group pic

(Incorporated in Scotland under Companies Act 1948to197S
Registered in Scotland, No. 62145}

SHARE CAPITAL

Authorised

£1,800,000

Issued and now
being Issued fully paid

in 0000,000
Ordinary Shares of
20p each

£1413400

In connection with a placing by Phillips & Drew
of 1,550, 000 shares at 1 50p per share, application
has been made for permission to deal in the Unlisted
Securities Market on The Stock Exchange in the
Ordinary shares of 20p each. It is emphasised that no
application has been made for these securities to be
admitted to listing. Shares havebeen offered to and
a re avail able thro ugh the Market

Particulars relating to the Company are available
in the Extei Unlisted Securities Market Service and
copies of such particulars may be obtained during
normal business hours on any weekday (Bank
Holidays and Saturdays excepted) uptoand
including 7th July 1982from>

PHILUPS & DREW

^Members of The. Stock Exchange
Ue House; London Wiafi, London EC2Y5AP.

M. J

.1

i. nightingale & Co. Limited

27/28 Low Lane London EC3R 8EB Telephone 01-421 12]?

+ i

1381-82

High law Company

120’ 120- Ass. Bnt. Ind. Ortf. ... 120
130 100 Ase. Bnt; ln«J. CULS... 128

75 fiZ Airsprung 70

51 33 Arimtaga & Rhodes 43

220 187 fiardon Hill 220

10 S 100 CCL llpc Conv. Prel.... 109

265 240 Cindico Group 2S5 __

104 60 : Deborah Sarvlcas ...... 60

181 97 Frank Horsall 129 — |

83 39. Frederick Parker 74

78 .-46 George Blair S3 — 1

102 93 Ind. Precision Castings 97 — 1

• 110 100 Isis Conv. Prel 107xd + 1

113... 94 Jackson Group 106

130 108 Jamas Burrough 114

334 230 Robert Jenkins 230'

71 . 51 Scruttons "A” 6 S^xd

222. .154 -.Torday & Carlisle ; 165 - —

lB 1 e 10 Twlnlock Ord ■ 1B1« —

80 66 Twin lock 15pc ULS 79 —

44 25 Unilock Holdings. 25 —

103 73 Walter Alexander 83 — 1

283 212. W. S. Yeaus. 234 - 1

Prices now avertable

P/E

. i, <*re« yield ' p u i. tf
Pnce Change di_y.<p) •/, Actual taJ. d

™ * 10-9 13.4

6.4

10.0

6.1

4JJ

9.7

15.7

26.4

6.0

6.4

6.4

7.3

15.7

7.5

9.6
31.3

5.7
1T.4-

5.3
7.8
8.7

100

4.4

14.4
10.0
10.0

5.0
86

7.5
14.7

7.1

8.4
T3.6

8.3
’ 7-4

8.0

3.8

10.7

I0T7

3.0
11. B
38

13.7
' 8.1
13.0

12J)

5.6

23.9

7.2

7-0 10.5

15.0 .19.0

3.0 12.0

8-4' 7.7

14.5 6 ^

w» Poena! page 48148,

3.3

8.3
3.2
8.9
7 A

4.5

5.5
8.1

. 8J3
9.3
8.1
10.7
11.9

T.a

97

12L3

THE TRING HAIL
USM INDEX
I25J9 (-0.1)

Close of "business 22/6/82
- Tel: 01-638 1591
BASE DATE 19/11/80 100

LADBROKE INDEX

■ Close. 555-500 ( +4).

! .1

- -. i f.

i

r ■■ -

■ i."- ■ ..

• - r*;£.V

r\ _, I • -‘in* ; i

-

r '

lr ';'-^5S- a

•- v::^^ *

=■. ^*K i

' :, ' J ' ; * 5 i ^ •■

•~ .,.:;?* «$* .■
, _■ ■■JflSft Jpi
■ ■■ - r- n., 1 ^ fc

■•:: «

* f

' ^|‘ l

•■ ^ «

■Xr%J?k -

-,_ . -•* anwjjj ' ?

■^ISsiPjjj * » .

- ... u * «o «. 1-

' "twin » /

• ;."■■=• *+£■ •£•
Y.‘ Va *»£r «'

' , - 2f»ji r.

. : -IJonu .

Y \ -:r^4 . ^

. : A^fstes r
;.; ^rr^ns p
''. ' -~iB.fi -
• ■ 5 *- E-V. .

; ; '■>“jss-:. 1

• ” '" to ( 5

r. saaj- 3

Investing- and making

t .. The Chajbrinflnfc Report for the year *

£ | tended 27th February 3982.

■ ? 3n my statement last year; I said that for the previous
j six months we had been experiencing the most difficult
; “trading conditions that any of us could remember Itis
-■ taking longer than most people expected for the world
5. and for Britain to emerge from the recession, and our
t policy during the past year has been geared to the need
, to.be cost-effective in a market where over-capacity in
£ the industry has added to the problems caused by the
*: recession. .

Progress

PROBE

W ? fo:

* k

' ‘ .i r . Sff

sction

iip pic

■ --.i--23a3

rAL

issuedajg

>i -.3 issued rjftfp

aasi

•- acri'eJS*.
.“- r2 jatas

•• IbeEeve that, to w e verp ai nfal the
battle against inflation been, it is
the right policy to continue to fight
agpmst it. Winning this battle will

* give us the abffitytopay oar way in
the world, and therefore provide a
better future for Britain. The brew-
ing industry, Eke everybody else,

. thrives in a prosperous commuinty:

" I remain an optimist, and I believe
- the tide has started to turn, but it is
barely flowing yet m the right direc-
tion. We have got a long and hard
task trading, this year and next, to
ensure that our future improves.

This year's profits, although the
result of great efforts by everyone in
.die Company to do rihat is neces-
sary and abit more, have, iufact, not
kept pace "with inflation. fo the cur-
, rentyeai;I hopethatwe can achieve
a result that matches inflation or

* passes it in that way, we shall be
■ achieving real profits and growth.

“ ' Thmover for. the year increased
by 7.6% bid' we achieved a growth
rate in profit before tax of 10.2%.
This was almost within reach of hr
. flation, which for our financial year

* averaged 117%. To accompEsh-ihis
result and continue the implementa-
tion of our plained investmait pro-
gramme required very careful cash
flow management Our success in.
this activity is evidenced by the con-
tribution of more than £4 nriffion to
prafitby reduced interest costs.

The importance of self-generated
cash flow in a tune of high interest
i rates needs no - emphasis, and I am

almost 2 Va times thereto offafiztxm.
This increase has been a signifi c an t
factor in the recent decline in the
industry uaticnalbeer volume.

Companies Act
3980

. \

On the 1st February 1982 the
Company was re-registered as a
public company, pursuant to the
Companies Act 1980, under the
■ name Whitbread and Company,
Public Limited Company (abbrevi-
ated to Whitbread and Company,
PLQ.

Your Directors consider it
appropriate to seek shareholders’
ap p roval of two resolutions which
relate to the Companies Act 1980
andarespyionto adqptanewset of
Articles of Association. These pro-
posals’ kre more My described in
the separate letter to shareholders
wh^accon^aniesthis Report,, and
which sets out the threb resolutions
which will comprise the special busi-
ness of the Annual GeneralMeeting. -

UK Business

’ IneedhardtyteByoutiiatthfilJK
is the core of our business. Three-
quarters of the Campanyb -assets
are in our public houses; equally
im porta n t are our human assets, our
'licensees, both tenants and mana-
gers. Even daring the recesapri,
good pubs, skSMy modernised.

A view across /he Medway to The Malta -one of Whitbread's popular Beefeater Steak Houses —
■ nearMaid&Ionc, Kent There aremorc than 100 Beefeaters andtiew ones are bemgqpenedatthe
futeofoneaweek. More ofWhi&read's total investment, some £77m during theyear, isbesngpui
into mcdntammgand refurbishing pubs, as well as new catering developments.

up.- to being m the rightshape for
tile ’80s and, to that end, we have
undertaken a programme of re-
organisation that we believe is
essential for the foture prosperity of
yomCompany.

Wehavehadtocutourproduction
to reflect a diminished market, and
sfim down our manpower; which,
sadly,, has involved closures and
redundancies. We have tried to do
this as humanely as we can, by giv-
ing reasonable notice, the best
terns we can afford, counselling and

1

! W-" •

OUR RESULTS

Year to 27 th February 1982

£000V

27.2.82 .

282.81 .

Turnover

841,726

.782,148

Profit before taxation

73,188

66,388

Ordinary dividends

18,610

16,885

Retained in the business

27,955

42,699

Earnings per share

14.4p

■ 15.1p

Dividend per share

4.9p

4.5p

Dividend cover

29

3.4

Added value per full-time employee

£13,635

£T2,106

Co. L ifll

tp say mat. urn., wuu u*v«>

ment of some £77 milEon during the
year was 1 entirely f und ed by this
* means >- even to the extent of pro-
viding an improvement" in out Squid
position of almost £5 nnffibin over the
previous balance sheet ___ -
V" ^ftoonmrii^afiialifividM
of 3: 4 pence per riiare» we are re-
cognising the need to provide a re-
aT?«Hr return to our shareholders
• on their capital* This is an increase

of 0.33 pence per share on the final

dividend of last year; and raises the
total ordinary dividends for the year
by 9.7%.

' Taxatio n andBeer.
Volumes

1 1 The brewing industry naturally
wrpftrf-n to pay its share through
ddtyandtax. Our view may not, of

> cour8e,beiegarfedasinq>aEtialbut
i ft fa the general opimm in the brew-

| fog jn djirf ry Minniigst wholes a lers
i and rdafiers that beer is currently
i over-taxed. Its afect that, since the
start-of- 1980; doty and VAT on the
average beer have increased by

with good licensees, have out- 1
performed the market as a whole.
We are putting more of our total
investment into retailing, winch we
see as our opportunity for the
ihture.

- We now have oyer 100 Beefeater
Steak Houses, and are giving our
shareholders, an incentive to go and
try this new type of restaurant.

We have also entered into an
agreement with. Pizza But, a sub-
sidiary of the American c ompan y
Pepsico; we are ^ going to extend
jointly the enterprise in this country,
and make their products available in
suitable pubs.'

" The pnb needs to. adapt the serr
vice it oflers to the changing
demands and needs of the pubhe.
We find that types of opaation,
where good value for money food is
availabte as wefl as beec wines and
spirits, in attractive suu'ouinfiags.

Opt job k to imp rove the return
ca, our trading property assrfs by
y*»mg ti hat our customers gst the
first-efass prodnets they want; de-
E v e a r e d to dti time, at the
most competitive cost, ft all adds

using Voluntary redundancies
wherever possible, particularly
among our longer-serving em-
ployees.

Last year; I mentioned the steps
we were taking to help our own
redundant people, and to create new
jobs by enootiraging the growth of
small businesses. We have progres-
sed an both points. We are now
offering a wider range of advice, and
our wOrk with small businesses has
developed through our invefiveznent
with such o r g anis atio ns as Enter-
prise Agencies and Business in the
Community.

t

Community
Concern- .

_■ We place great importance upon,
the Company's involvement in. the
communities it serves, and the per-
sonal CrtrnrrrifiTiPTit SO many of OUT
people have to local initiatives for
trying to sdhre unemployment pro1>
ferns, and help with , other social
responsibilities. * __

We "must not be content just to

accqpthjghlevefeofimempkjynient

as a continuing problem into the
foture, as many are forecasting it
will be. It is vital that we continue to
strive to find a strategy for industry
which is acceptable to government
and to the trades unions, and which
improves the employment and
investment situation, for only
through such an agreed strategy can
we create the necessary wealth to
pay lor the social benefits we all

■ want to receive in the form of educa-
tion, health’ sendees and pensions.

Ales and Lagers

I think the strength of our. exten-
sive product range has been demon-
strated by hrands such as Trophy
Heineken, Stella Artois, Mackeson,
Gold Label and KaltenbergDiftPils,
all of which maintained their position
in the market At the same time otir
local beers, such as Welsh Bitter;
Chesters, Blowers, Castle. Eden
Bitter; Porapey Royal, FremHns,
'Wethereds and others, ail (fid well.

Wines and Spirits

During the year, Threshers have
opened 15 new stores. They have
participated in the very successful
launch of the StowelTs'of Chelsea
Wne Box, with sales of over 2 m3-
Eon 3-Hre boxes. More recently.
Threshers have introduced a. hew
fine blend of Scotch whisky under

■ the Braemar label

Britannia Soft
Drinks

The merger of our soft drinks
interests with Bass PLC has now
been in operation for 18 months, and
is trading strongly with such well-
knowri tends as Canada Dry, Raw-
Engs and R Whites- The year has
also seen devetopments ofnew pro-
.duris, ‘ particnlariy the successful
launch of 1&-Etre sizes of lemonade
and cola. We are confident of the
future of this enterprise.

. International

Our overseas earrings are at
present heavily influenced by the
state of the Scotch whisky market,
which is going through hard times.
•H o wever , in this difficult market,
sales of Long John overseas have
exceeded those of last yean This
year; Long John International
zeccraedtheirbestevartzaringpco- .
■fit figures.

I am particnlariy pleased to be
able to report the worthwhile con-
tribution to our group profits now

Safe ways and smaller shops and
stores for local traders. We have
opened the Squash and Recreation
Qub, which is a joint venture, and
seems to be prospering.

I mentioned the development of
the Porter Tun Room, for recep-
tions, conferences and the banquet-
ing market, in my Report last year;
and the operation has c ontinue d to
. grow We have opened additional
facilities in the Cellars - known as
Smeaton’s Vaults and the James
Watt Room- and are in the process
of devdepng further space inthe old
Sugar Room. All these feriEties are
available, for public hire. I hope that
our shareholders m particular will
Tnalctt use of thpffl, and rmrnmmd
them, should they have the oppor-
tunity to do so.

Sponsorship

The past year saw the third run-
ning of the Whitbread Round The
World Race- an event that we have
put an every four years." I think that
there is no doubt that this Race now
has world recognition as the “Bine

We thank them all for their years
of devoted service to the Company,
and wish th em l ong and happy
retirement

I would also like to thank
everyone in the Company, including
many rider and long-serving mem-
bers who retired early, for what they
have achieved for Whitbread this
year. We have a first class team to
face the challenge of the future.

Shareholders

The loyal support of our share-
holders is vital to the Company, and
in the pest we have tried to reward
them with a good record of dividend
growth, hi addition, we are making
the experiment this year of offering
threw a tr y yft tangible and immediat e
reward.

With the Accounts is a sheet con-
taining vouchers for. 1

(1) a free bottle of house wine, given
when two adultmeals are paid for, on
production of the voucher at any
Beefeater Steak House, and

(2) a discount on a StoweHs’ Wine
Bax purchased at any Threshers
shop.

FIVE YEAR RECORD

Turnover (m)

£562* «« mm

mi

• = f.;H

imf]

ikkk

'■ '-try':-;;]

Profit before Tax (m)
£ 43.5 £544

£ 782.1

: * / a

” J . . .<r
'■

y

'••if ft-..:

£66.4

£ 841.7

. H i; ,

£ 73.2

■«.. jp*.

T

7,i •

One vfthe successes of the year was StouxUs
Wine Box, a new may qf marketing time at
Britain.

being made by the Highland Distil-
lers Corporation of California and its
Scotch whisky brand Scoresby
Rare.

We acquired a major holding in the
company three years ago but we
were very happy to leave the man-
agement in the hands of our part-
ners, the Ambrose family. Jh the
pari: three years, volume safes have
increased by over 30% ina static US
market, and Scoresby is now one of
the best selling brands of Scotch
whisky in four of the western States
qf the US, including California.

During 1981, Whitbread Technical
Services began their efforts to
generate overseas earrings. They
secured contracts in Nigeria to buM
two new breweries. WTS are well
equipped to undertake project man-
agement and constructional tasks in
any part of the world, and promise
worthwhile future profits for the
group.

Our German wine subsidiary,
Langenbach GmbH, enjoyed
increased sales in its home market
and in the UK, and it was a year of
transition in the important US
market, where its ^distribution
was transferred to the successful
Aknaden Company of the National
WstiJJersCcsporatim.

Oriswefl Street

During the year; we have largely
completed the North Side develop-
ment, with the building of 138 flats
for Lrimgton, a supermarket far

Riband” of deep water sailing
events.

It is runby the RnyalNaval Sailing
Association, and this year attracted
some thirty entries, ft was won, for
the second time in succession, by
CameEs van Rfetschoten with hfe
boat . Flyer; who received both the
handicap and fine honours prizes
tomBLThe.Duke of E&four£h
at the prizegiving in the Porter Tun
Room.

It has been our policy over many
years to try to associate .our name
with the most prestigious events in
their particular field, and I am satis-
fied that the Whitbread Round The
World Race, together with the
Whitbread Trophy at the Badminton
Three Day Event, and the Whit-
bread Gold Cup at Sandown Park,,
come into that category, and suc-
cessfully promote the name of the
Company, both in this-country-and
around the world.

Whitbread People

Andrew McQuillan, our finance
.director since 1973, retired in April
this yean We are very grateful to
him for all he has done for the
Company, particularly on the finan-
cial side of the Chiswell -Street
development In his place we weir
come Lionel Ross, who has come to
us from Cavenham Foods.

Harold Jenkins retired as an
executive director in April 1982, and
will leave the main board cm the 1st
October after 47 years with the
Company on the commercial side.

Bill Knight retired as an executive
director at the end of May, and win
retire from the board at the AGM
after a distinguished career over 34
years on the brewing and technical
sideof Whitbread and of the brewing
-ministry, both in tfris country and in

( Virrmwm Mark e t .

We hope our shareholders will
enjoy using them, and will continue
to buy the Company's products, and
recommend them to their friends.

The Pnb and the
Future

In onr trading efforts, weare very
conscious that we can only succeed
in partnership with our retailers.
They too, have bid a difficult year of
rising prices and less spending
money in the publics pocket. Some
of them, in the inner cities, have had
to face extra problems and real
danger which. I am proud to say,
they have overcome with their usual
coinage and resource.

The pub is an integral part of the
British heritage, and has been fun-
damental to the growth of local
community Efe. With the accelerat-
ing changes in social structure and
behaviour; the pub must continue to
evolve to serve the tastes and
demands ofnew generations as well
as present customers. But even in
an age of mass mobility the pub plays
an important role in providing a
stabilising influence in. fife focal -
community. It is, therefore, vital
that licensees, brewers and gov-
ernment should work together to
ensure that the public househ unique
standards of friendly relaxation and
social -zesponribifity will still be
eqjoyedin the years ahead.

As I write this statement, we are
all hoping for a speedy and success-
fill outcome in the Falkland Tsfanrfq_
And, with the slight signs of
improvement in the economy which
we are now experiencing, I am con-
fident that Whitbread can look for-
ward in time to better conditions in
which to trade, both at home and
abroad. Iam also confident that your
Company and its people are ready
and able to take full advantage of any
such improvement.

n

/ tdtizi ^

CHARLES TIDBURY, Chairman

[ Aimwl General Meeting?
j ■ J2noen>lbe3day2QtiiJttfy&& \ -

! ’ p ' ,.=f l J Bimaj, CUsvieUStreet,

• LombnEOreSD. . .. .

- E5T?£ 11742

FOR CHOICE

22

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LONDON TRADED OPTIONS

June 22 Total Contracts 637 Call# 470 Put# 167,
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«> BORNEO PETROLEUM
SYNDICATE, PIC.

Extracts from the Statement of the Chairman*
Mr. Campbell Nelson, at the 68th Annual General
Meeting held in London on 22nd June 1982.

B1 The Stock Exchange value of our listed investments at the year
end was £13,109,000 showing an unrealised appreciation of £8,813.000
over their Balance Sheet value. These investments include the
acquisition at a cost of £1,052,000 of equity interests in some of
the listed smaller U.S.A. exploration companies. We have also our
unlisted investment of £105,000, our exploration acreage in Canada
£1317,000 and our recently acquired oil and gas producing
properties in the U.S.A. £351,000. A new feature in the Balance
Sheet is an amount of Long Term Lbans at £2368,000. These are
four to five year Bank Loans to finance our investment in Canada
and the U-S-A. and replace in part the short term Bank Loans we
had last year to temporarily finance our Canadian investment.

B Pre-tax profits for the year were £1.095.000, little different to
the prior year despite Interest -on Loans £104.000 and Consultants*
Fees £101,000 which are new items. Profit after taxation was
£747,000. an improvement of £27,000 over the prior year. The cost
of the interim and proposed final dividend is £576,000 (up £29,000}
representing a 77% distribution of net earnings.

9 The make-up of our listed investments at 31st March last at
their Stock Exchange values was 84% oil companies, 7% gold
mining and mining finance companies, 6% industrials and -3%
preference shares, little changed from the prior year.

B Our expenditure in Canada for the year was Can 5260,000 or
£118.000 being mainly interest charges bn a bank loan raised by
our Canadian subsidiary. This bank loan was repaid in March, 1982
when your company subscribed for new shares in the Canadian
subsidiary enabling the latter to pay off the bank loan. In addition
to the above expenditure there was an exchange adjustment of
£308.000 because of the strengthening 'of' the Canadian Dollar
against Sterling during the year. Dome Petroleum drilled a farm-in
well during the year in our acreage at Boundary Lake which earned
them a 50% interest in the acreage. Dome' attempted to complete'
the well as a gas well but encountered problems. The well is now
shut in awaiting gas markets before a re-completion is attempted.
No additional drilling is planned for the current year.

B Just prior to the end of the year your company acquired at a
cost of £351,000 a direct participation in oil and gas producing
properties in the Kitty Field, Campbell County, Wyoming, in the
U5.A. Revenue is derived from stripper oil production and from
a gas processing plant.

B Luc year I told you that our Western Canadian investment
would rise to L\\ million and our projected investment in U.5.A.
oil and gas ventures to £2 million, including, in the case of the
latter, portfolio investment Our Western Canadian investment
now stands at £1317,000. In . the U.S.A. our investment in
exploration companies and ,oil and gas ventures has totalled
£1,403,000. Our projected further U.S.A. investment for the
current year should bring the total to about £2 million.

H Our investment portfolio today shows an unrealised
appreciation of £8,906,000. it remains largely an oil investment
appreciation. Our confidence in a good future for the industry is
undiminished. For the current year we shall have higher interest
charges to meet. We can expect, however, a higher income from
our investments and a continuance of sizeable profits on realisation
of investments to give us a good result.

Copies of the full Statement and the 19B2 Report and Accounts
are available from the Secretaries of the Company, Pembroke House
(5th Floor), 40 City Road. London EC1Y 2AD.

• Financial -Ti

Coapanies and Markets BIDS AND DEALS MINING NEWS

Global’s £26m
Texas oil deal

BY RAY MAUGHAN

' Global Natural Resources, the
sole remaining, arid fast expand-
ing, offshoot of Investors
Overseas Services, has struck a
$44m deal ‘ with a privately
owned Texas oil and gas group
which may have an important
bearing on Global’s bitter proxy
fight with a group of dissident
shareholders,

The dissidents, lead by Ur
Marvin Warner and Mr' John
Bertogtio, are attempting to
unseat the current chairman, Mr
Frank Beatty, and- the other
directors when Global's annual
meeting fc convened in Jersey in
September.

Global has agreed' to buy
McFarlane Oil, an * energy
exploration and production
company based in Houston, for
a combination of 3.23m shares
of Global common stock. S9m of
6.5 per cent seven-year notes and
S*2m cash. Taking a London price
of 620p, down 40p yesterday, and
at current parities, the deal is'
worth some £26. 6m. The vendors
would hold 13.5 per cent of
Global's enlarged equity.

Global 's shares are quoted in
Frankfurt, London and in Over-
the-counter form in New York
but are denominated as. bearer
shares and there is no register
of holders. Both the iDCtraibent
and dissident factions, organised
in the latter Instance by the
Wall Street brokerage firm. Bear
Stearns, are faced with the task
of identifying shareholders and
then persuading them to undergo
the ccfnplicatCd procedures for
proxy voting.

Mr Harry Fitzgibbons, a
director of Global and . its

financial advisor," Harabrcs Bank,
forecast yesterday that these
efforts would unearth holders of
perhaps a little over half the
equity. .He stressed, however,
that the McFarlane deal had
been under negotiation before
the' dissidents fim surfaced to
lodge Ini bearer shares with the
Brighton- registration office In
AprtL

He pointed oat; too/tfcat “no
assurance was asked for or
given ” as to how the new Global
shareholders would vote at the
crucial annual meeting on
September 13. There was no
homogeneity of McFarlane share-
holders, he added, slime- the
Houston company' included Saudi
and .Lebanese minority share-
holders.

The deal will not be finalised
for perhaps another two : months
by which time the applicable
waiting periods under the Hart-
Scott-Rodino Improvements Act
will have expired and a Class
One circular will have' been sent
to such shareholders as Global
can find.

The response from the
W&raer-Bertoglra faction last
night was predictably' hostile.
A statement from the dtesfdexrts
stated that “ the' issuance of- the
3.25m shares is clearly designed
to frustrate the legitimate
interests of the shareholders of
Global."

- In view of the serious
financial and legal issues raised
by this transaction, the Bear
Steams group is reviewing with
counsel the alternatives avail-
able to shareholders to prevent
misuse of corporate assets.”'

Lookers’ bid for Braid
brings a poor response

THE £3.1m bid for Braid Group,
the Liverpool vehicle distributor,
by Lookers, Its Manchester rival,
has been accepted* by share-
holders owning only 6.S per cent
of Braid's ordinary equity.

This meagre response has
meant the offer of 50p a share
has had to be extended to July 5.

Holders of only 412,487
ordinary shares bad accepted
Lookers' offer at the first closing
date on Monday, - according to
Lloyds Bank International, tbe
company’s advisers. '

Together with the 21.1 per cent
of shares held before the offer
and the 1.3 per cent acquired
during the offer period, accept-
ances have now been received for
29.2 per cent of the ordinary
capital. Holders of 32 peT cent
of the preference capital have
also accepted.

Mr Ken Martindale, managing
director of Lookers, said the 6.3
per cent of equity was held by .
23 per cent of shareholders,
reflecting small shareholders’ dis-

satisfaction with the recent lack
of dividends.

Braid directors said they noted
the low level of response to the
offer and concluded that most
shareholders agreed the offer was
“ill-conceived and inadequate."

Lookers yesterday announced
a fall in pre-tax profit to £161.473
in the half-year ended March 31
from £402,115, on turnover 7 par
cent lower at £32.9 lm.

The directors intend to recom-
mend a total dividend held at
3.35p. of which an unchanged
interim of 1.4p has already been
declared.

Attributable profit fell to
£192,153 from £317. U5, and
stated earnings per share were
2.6p against 4.3p.

Lookers has continued, to
operate profitably despite difficult'
trading conditions in the first
half. The results fqr the first
four months were affected by the
bad weather and the recession,
although there has since been a
marked improvement, the
directors said.

halted

THE SHARES of Sonic Sound
Audio, the Tottenham'' Court
Road, hi-fi retailer, were
suspended at 34 p yesterday
morning “ pending an announce-
ment"

The price; marked a law point
for tile company wbdch .oame to
the mar fcut in January. 1981 with
a placing at SDp. Earlier this
year the shares bad been as hi g h
as 129 p before ' it became
apparent that tbe company had
run into losses.

In the latter part of May this
year SanJc's price started to All
quite rapidly before tiie
company made an official
announcement on -June '3
warning that tbe first half of the
current year to October 31 ' "had
been extremely difficult”- At that
point the price was down to

Mr Lionel Astor, chairman and
founder of the company,
emphatically denied that Sonic
was in financial trouble -“the
company is not suffering from
any serious liquidity problems or
under pressure from either its
bankers or creditors,” be said.

The Stock Exchange is
believed to be investigating
dealings ahead of that official
statement.

" A week after that profits warn-
ing the company .revealed half-
time losses of £568,491 despite a
turnover rise of £2. 59m to £4.49m
In the corresponding period'
there was a £353,610 profit For
the full year -to October 1981
Sonic just topped its prospectus
forecast with -a profit of £804;957.

Sonic had been caught out by
poor -trading conditions and
price war at. a. time when it had.
just completed a substantial pro-
gramme of physical groWth.
Borrowings had spared to peak
at £1.4m and interest charges in
tbe first half were £150,000, more
than double the .whole of last
year.

In. his interim statement Mr'
Astor said the company had
taken drastic action to curtail
costs and an upturn, in die early
part of the second half left the
directors optimistic that there
would be a marked Improvement

BOC cutting
machines
division sold

Esab, the Swedish welding
equipment manufacturer, - has
bought tbe cutting machines
division of British Oxygen
(BOC) - at Andover for an un-
disclosed sum.

In April this year it bought
another BOC gas cutting com-
pany. Hancock GmbH of West
Germany. The latest acquisition
wiH be formed into a company,
Hancock, which will, have an
annual ic mover of between £5m
and £6m. It will supply about
half the UK market

Rescue offer for Northrop

TEN YEARS after his first bid
for British Nortbcrop, . Mr
Davoud Alliance is back with
what amounts to a £313,000
rescue offer for the textile
machinery and property group.

Thorugh a private company.
Padworth Investments, Mr Alli-
ance is bidding ISp per share
for the 52.77 per cent of North-
rop he does not already own. He
has been chairman since May
1973 so ft has been left to the
independent directors, Mr E.
Bethwaite, Mr J. N. Carwell and
thet former deputy leader of the
Labour party. Lord George
Brown, to consider the offer to
be fair and reasonable and to
recommend acceptance.

Mr Alliance, who also heads
the textile manufacturer, Van-
tona Group, has irrevocably
undertaken to accept his own
offer in respect of his entire
Northrop holding.

Northrop cut pre-tax losses
from £753.000 to £117,000 last

year but the Blackburn-based '’share, compares with bank

group's financial and trading
position continues to be “very
difficult.” Its bankers, National
Westminster, “have been keep-
ing a running tab on us,” the
company secretary said yester-
day, through Northrop’s report-
ing accountants and auditors,
Ernst & Whinney.

■ Northrop's net current liabili-
ties pow stand at £L7m and net
worth of £850,000, or 37.4p per

borrowings ef about £2.5m.

Northrop’s former chairman
warned shareholders ten years
ago that without the bid from
Mr Alliance, the only foreseeable
alternative would have been
liquidation. Now National West-
minster is insisting on a major
re-financing and says that this is
only practicable if the group is
wholly under Mr Alliance's
control.

0

0

BY GEO RG£ MILLtN G-STANUSY.

_ _ - . r ^jV

THE PERFORMANCE ' of ‘whi(± ^ey: becfl^

London’s Charter Consolidated. Tbe main contribution , to the «uf . - reasonably - : - satisfied -^ with. . .& '
industrial and- mining group far; improved . profits came from in- Chat^eria' performance , butcon- v -' 1

rtf

tile year’ to March 31 bears out vestment ineotne.^ where the tiro, 'ceded; that : the "grou pwi l have. 1; Vy fL
... . jy' . associated companies. Johnson - a .difficult ; -time-, .improving.. oa . .- j , ...

•in ■ the -piiixent. 12 .

r t? '
• 4 i£5

-¥.,•1

the foreesat made at the hallway, — — , t . .

stage. ‘ ‘ Matihey,. the . .. ...

Mf NqH Clarke, drief execa- • flnefe. and : ;Andeixtm jSiratn- :moj^B. „ .... .

tive, indicated that secondhaif .clyder.- thfe 'ntiitipg ecpiipment ' Operating profits fM'. Gie fiiBt
profits would probably amtisue * mirmfaciia« , ,-~ 'bbth had • . tot? quarter, which eiosefr afc.the -end
to grow at about tbe * 14.6 pet good yeatt' 1 Z". of'tfi®' month. 'wjfi'probaWy be

cent rate achieved in' the' first . i see ' about -the' Same test year, • be

six months, .and the fnlHrear ^ .“V ' t, • * •; ^ ^ V ' , ...

growth rate Js'lS .4 per esatT «r > itsm 'Mx~'Harry Opperihehuer eon.
the at^ut^le level-. : a«oc. companiM .16382 16**16 tinaed his gradnal^withdrawal fa n ,

The final dividend is. lifted to sunrftot ...... n. 6 K Srfi 37 .from- Ms business, nctivitiea by c^.h,

7 - 25 p a share’ from & 6 p, making^ imamn recsivabit ... - 7 .S 34 resigning IronxrC 2 iaiter^ ; bdartL V

a total of Up against 10 p last .;M«kina •••••.. ^ •“■J” along with Sir PfcUfr* topped *

time.. Attributable profits were - 5 -g .f'g beimer. They arereplaced by two 1 - 4? ;0

£ 37 . 63 m, up from_S 2 . 59 m. : 12S? wyaw? ".V.V. 7.333 ' 5 ;B 74 . other mentbetri ^ o£ the^ppen- -'k ®.

Earnings of 35 Bp a ^nare 1 Profit tax .ra ^27 52,791 - heimer family*. ^Nicholas- ;;and > i3 ''

compared with OLlp are shown t»x is.sb w. 72 i ' Anthony;: ' '

before extraordinary debits of oroBr .’.. 33 . 7 » ' Mr-Neil aariwribeJiweseirt Jj b ' lir

- «. ■’sas3r^i±r- jS^^'SsiiSSassit

rationalisation and closure costs- debits

,t. ■■WSSBCTSBE-

l 'ZE 9 S&&£Z*o2vgL:- &X2&*

slightly: rentiT. Sfore fee; &

Alexander Shand and Beralt Tinf' tion -to -^secmPB ^ "^>f -the.:

illy.

Co

and -Wolfram from the dates- on Gl§sgpw-baSed company .

>:ja

.-t. V

ATIWB0TifflL*.**0|BE5 of Salow.from .f”

the ieiS-«ni^..Jeto 5 S». *H 5 JS« 5 E:Sfe:

■ ^
i b >

Jr

5n ;

-depressed' prl<Ms"' jhd. jnetid

This sale produced a. gain, of ,wi& festrict^tt^.^ffou^' ^dlity
ion of ex- ;to carry out fts f ir«toug. «plora-

.glSrifiSi ^emi to Peruiodalan - : NastehaL ' . the . ex-

S accounts for state - controlled , .; inyirtment
about 23 per cent of Malaysia’s agency.

STSSS '13FSFZ Mp&2m after deduction . s ^

Jf^S^foSTer SSS1 P< Th? latest figures dq not com, ^grammes,

Coro oration and MTD’s, subse- - pare with tire attributable profits loretain.itsfposttiPhv^a^inilor
to that of of M$73.62m earned in the year . mining. cpneertL ;
quent change mum to uw. ox Juce 30 1981,- . as they .' -Jha move • ^it

represent the performance of the ihss. adflauiSl_ to
enlarged group, - "which has.- five., ."finance , these progranunes^MMC
tin mining subsidiaries. plans' to disp<*e. ; ;df\^i^O- per

-At tiie operating 1 level profits 7 cent stake -in Sme '/Bar by, ; tire
for the seven-month "period' ^Mal ay si ar bas ed r^pja ptation group,
(MMC has changed its account “when . -j eircttin^nMft' .'. 5™
mgr "year-end); are . shown. : ui ... '

tW«

y

Lmc Ji 1

r^ F -

-.jin? -
* ]*?

the acquired, company,

It : was that takeover • which
gave rise to the extraordinary

*

Seltrust share
structure
changed

THE RESOLUTIONS to 'restruc-
ture the Share capita -of
Australia’s : .fihanetelly-4retibled
Seltrust Holdings were all
passed by the special meetings
held in Perth; Anstratia,- mi
Monday.

Hoiden of the “Z” preferen-
tial shares will thus -exchange
these for hew- “A" ordinary,
shares in the ratio of five' -A’
shares for . . every. _ ' three “Z
shares held.

Seltrust, controlled by British
Petroleum through its Selection
Trust subsidiary, has performed
poorly, for most of the time since
it was set up in 1979, and . has
had to defer the dividend due on
its preferred, stock several times.
- Some shareholders ■ had
indicated that they were un-
happy with -the terms of the
exchange and there had beeq.
suggestions that there might be
pressure on Seltrixst's board to
improve the terms at the meet-
ings. In the event, very few
shareholders attended and the
necessary resolutions - were
passed without discussion.

The fact that BP holds 78.8
per cent of Seltrust and thus
the resolutions were assured of
the required majorities, was
presumably responsible. BFs
holding falls to 753 per cent
after the restructuring.

This announcement appears as a matter of record only.

Light-Servigos de Eletricidade S A.

Rio de Janeiro, Brazil

U.S. $50,000,000

Medium Term Financing

Guaranteed by

The Federative Republic of Brazil

Chemical Bank
International Group

BankAmerica
International Group

Morgan Guaranty Trust
Company of New York

BancoNoroesteSA

Banco Real SA

Agent

Chemical Bank

June, 1982

RESULTS AND ACCOUNTS IN BRIEF

THOMAS LOCKER (HOLDINGS)
(screening end filirenon engineer) —
Results For year to March 31, 1982.
reported June 9. Shareholders’ funds
£14. 46m (£13 EOm); fined assets £7. 84m
(£7.B7m): net current assets £6.99m
(£5.76m): increase in working capital
Cl 71m (£324.000) including iricrane in
net liquid funds £855.000 (£744,000).
Chairmen says outlook promising, with
many subs4disnes having good order
books. Meeting: Warrington, July 15.
11 am.

already known, Investmenta £1 36.81m
(£113 46m); current assets E3.34m
(£5. 12m); current liabilities £7. 42m
(CS.OBm); loans TO. 84 m (E5.32m):-
sharehofdars' funds £106, 48m
(Cl07.71m): decrease in net - liquid
funds £2. 02m (£689.000). Meeting:
Temple Piece. July 14. 2.15 pm.

funde £958,819 (£377,526); fixed assets
£l.64m (£375^76); net current liabili-
ties L725.03D f £199.447). Chairmen
says the deficiency of. realised
reserves will . be eliminated shortly by
higher profits end • dividend . cert be
paid again in the near luture.

FRANCIS PARKER ( builders’ supplies
producer and property developer) —
Results lor 1981 reporad May 25.-
Sha reholders' fundi C7.45m (£7.42m);
loan stock E2-27m (sains); fined assezs
£7 .67m (£8.®ai); lend held for

development £2.2 m (EL14m); net
current easels £871.000 (£364000) in-
cluding bank Joans and secured over-
drafts £2.34<n (£2.24m); secured bank
loans £1.78 nt (£13m); net decreess in
funds £*13.000 (£A.S8m increase).

Meeting: Arundel. July 12. noon.

JOHN SWAN AND SON5 (livestock
auctioneer and estate egam) — Dividend
8p (7.425p) lor year to April 30. 1082.
Turnover £908.000 (£812,000): pre-tax
orofit £186,000 (£182.000). including

extraordinary surplus on aala of
pmpefios £11. COG (ml); lax £85.000
(asms). Earning 3 per share 15. Ip
(14^p).

HAWLEY-. GROUP (feiaure goods
manufacturer) — Results for 1961
reported May 29. Shareholders* funds
El 6.64m (£9. 3m): secured loan eepiraJ
£8.85m (£1m): fixed assets £17. 13m
(£8.09rri); investments £1 3.54 m
(£4. 03m}; net current habilities E*.12m
(£368,061 assets) including cash £3.45m
(£28.300) and secured bank overdraft
£751 m (£2 TSm); decrease in working
capital £3.65m (fGOi.OCK). Meeting;
Maiden head. July 7, 10.00 am.

FOSTER BROTHERS (clothier, . tailor,
outfitter)— Results for veer to February
28 1982 reoorted May 28 Shareholders'
fends E33.79m (£33.59m): loans

£l.93m (£235.030): fixed assets C29.B3m
(HO. 17m); current assets - £24 ,2m
(£23^4mi: current liabilities £19.76m
(£17.33m): decrease 'in working

capital £4. 33m (£3.B3m): . Increase

including decrease m cash end
deposits £1.56m CC3.26m inersesg).

Chairmen says cost cutting and
rationalisation .should achieve profit
increase in year nhoad- Meeting: Soli-
hull. July 14. -noon.

THE LONDON t AND PROVINCIAL
TRUST — Results for year to March 31
1982, already known. Shareholders’
funde E27.56m (E24.01m); Investments
at cost £28.31m (C2S.41m) including
listed investments ouietde UK £13.32m
(£11. 32m): net- Current si sets £ 836.778"
(£8,954); increase tn uninvested funds
1722.972 (£350.951). Meeting: PAD
Building. Leadephell Street, EC, July
15 at 2.15 pm.

FLEMING UNIVERSAL INVESTMENT
TRUST— Res ult5 lor the year added
March 31 1982. alreedy' 'known:

Investments at cast E20.4m (£1 8.66m).
at valuation . £47. Wm ‘ (£47. 35m);
Currant assets ET.15m (E1.0»m).
currant liabllitiae El.SSm (£T.07m).'
Moeting: 122 Usdsnhell Street, 6C,'
July 15, 3 pm.

EUROPEAN OPTIONS

•-■'series--

Vol.

AUfl. ,V
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TOTAL VOLUME IN CONTRACTS; 614#
A = Asked 8=Bid

7,50

Cf=CaJI .

P=Put-

...TIME PRODUCTS (watch Importer,
jewellery retailer) — Results lor year to
January 31. 1382 reported June 16.
Shareholder* lends £30.22m (£27. 16m):
fixed assets £17 5m (£8 94m): net cur-
rent assets £18 52m (El 8.44m) includ-
ing overdrafts and short term loans
£14.81 m (£8.05m); decrease in work-
ing capital £525.000 (£94,000) includ-
ing decrease in bank balances and
short term investments £8. 24m
(C4.12in).. Meeting: Connsught Rooms,
WC. July 13, noon.

APPLIED COMPUTER TECHNIQUES
(HOLDINGS) (supplier of commercial
computer applications) — Results for
year to MBreh 31 1982 and derails of
rights issue reported' June 11. Share-
holders funds £3.08m (£2. 37m); fixed
assets £1J9m (Cl .34m); net currant
assets £1.78ra (£l.€8m): dec rease in
-net' cash aYid bank bile nces 025.190
(£791.131 inctesae). .

WESTERN DOOARS TEA HOLDINGS
—Dividend ,4p (tame') fan 881. Profit
before tax £132.490 (lose - £31.895);
profit after tax £99.953 (loss 03.140):
earn inns per share 7.75a (loss 9.2p).

COATS PAT OHS — Mr W. D. Coats.
Chairman, told AGM sains to end May
marginally ehead of last year, but
behind budget. UK market still de-
pressed and few signs o( buoyancy
overseas. Company seems to be at
bottom of trouqh but no signs that it
is starring to elrnib nut.

ELECTRA INVESTMENT TRUST—
Results for yoar to March 34. 1982,

PHILUP HILL INVESTMENT TRUST—
Results foe year to March 31 1982
reported May 28. Investments £173, 6m
(£158 74m); currant assets £11 .05m
(£11-2001); current lubHities £B.Z7m
(C4.84m): shareholders' (unde £1 72.52m
(El 59 31m); -debentures £4. 5m (same):
decrease In uninvested funds £490,000
(C4.77m increase). Chairman says
portfolios soundly based end will
respond to first »ign» ol intamstlohsi
recovery: directors hope to mslntein
increased dividend end males further
Increase in following year. Msetinq;
1 Brewers Green. SW. July 22,
2.15 pm.

HENRY W1GFALL AND SON (electri-
cal retailer end TV rental) — Results for
yeer lo March 27 1982 reported Juno

12. Shareholders* funds CITJBm

{n4.97m)-, loans C7.57m (£7.17mJ;

fixed assets E23.73rn (£25.47m)! current
assets CIO. 14m fn3.77m); - current

liabilities £15.1 m (£17.Q8m) Including
socured bant overdrafts £4. 77 m
(E6.34m); decrease »n ne^ borrowings
El, 8m (£693,000), Moeting: . Sheffield,
July 13. noon,

CONTINUOUS STATIONERY (Com-
puter paper' producer) — flosults for
year to March 31 1982 reported June'

13. " Shareholders . . funds £1.69m
(E1.49m); fixed altelB. £796.853.
(£755,477): net current easnte £939,831
(E866.387): Incraase in working capital
£98.779 (£25.549) Including _ inc rease
In liquid funds £8,936 (£206.855).
Chairman says current yoar has started
satisfactorily. Mooring: Great Eastern
Hotel. EC, July 14, neon.

PANTHER SECURITIES (property
Investment)— Results lor 1381: ^Pre-tn
profits £90.359 (£51733); Total Income
'C525.480 (£331,340); extra'ordinxry

debits nil {CPS. CTO), eamlngs oar
share 25 ?p (9 3p). Rharai-nlil'-r*’

final i
br>e

‘Th

ifflil'f

March

wrani
eviden
a|iu\ui
Aiigust
• T1
HBissu
sent*

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Ask

Oth.

Reiain

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hfisp.

“Here

fttiGf

fexaij

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■I

Swiss- Kuwaiti Bank

(Bonque Sulsse-Kovreitiennc) ... . .. ; . ;

(Af Bank al Swissri ai Kuwaiti) . / ??. ~ ^ -

tredhSuiB. ha iold.i minorfcir Mte of dM Binquc ii.dustrWI. et

de Credit, Geneva, tb .i group of Kuwaiti-dominated financial tnttitutiont • •

The Geneva banking^ establishment changed its trade' name into SwI„3cuwift| ' -v" :

Bank {Banque sulise-koweuaenne — Al Bank at Swissri al Kuwaiti) * ; ..

}« ’hare apical amounting at present to Swfr! 5D00JJ00 is now 27 X Vl

b ^ P ‘t Ho ' di, « -a subsidiary of Pearl Holding (Luxembourg) sJ

Piris ' ^ I «* i “ ‘

Pearl Holding' is 'owned by - ^

— Pari Investment Co., in Bahrain

— Alahli Bank of Kuwait

r-.- CommerciaI Bank.of Kuwait -

— , Kuwait.. Real Estate Bank

<20g>

> -Zj.yrty’ j

,.(8Q%> :

>>-

whereas tha Kuwaiti-French Bank ii owned by-
. — .Pearl Holding. (Luxembourg) SA.

-7. CrMk Irtdtrttriel et Commercial __

The Board of Directors of thi Swiss -Kuwaiti Bank is- composed as SIows

“ ^>*«^-aellerive “ -

— Mubarak jaJher Al-Sabah, Kuwait

i William^ Wipthi Zurich . . .

Hussein 'Mafckl Ai-Juma, Kuwait :

<^>IIonge-aeUerlv«

. - — Pnijippe Dujardm. Pari*

*— '-Oflvitr Paschoud, Geneva.

~ Wadie Salib, Egg near Zurich
* memberi of the Executive Committee

. .2 rue du Mont-Bianc ""

1201 GENEVA

^ Chairman

■Deputy* Chafrmart r '} : £
.^Deputy ChaMnwg^%:^s • •

The

new

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.v^«£

Financial Times Wednesday June. 23 1982

asd Markets

UK COMPANY NEWS

BASE LENDING RATES

Centrovincial rises to
£1.5m: pays 1.34p more

PRE-TAX revenue of 'Centro-
vindal Estates afranced from
0_37m to £1.55m for the year
ended March 31 - 1982 and the
dividend is being stepped up by
L34p to 4p net per 20p share by
a final of 2p.

Net property- income for the
■ period, including realised deal-
ing profits Of £70,000 (£23,000).
\yas also higher at £4.05 m. cora-
: pared with KLTra. but was sub-
ject to interest charges of
12.57m; against £&35m.

‘ . The taxable revenue comprised
i flJSm (£L32m) from the UK
side and £292,000 (£49,000) from
overseas.

: Group net revenue generally
reflects -the continued improve-
ment in net rentals from' pro-
perties in the UK and overseas,
offset - by the higher cost of
borrowing.

. Following the reduction of
group borrowings f reported in
the interim statement), the con-
tribution to net revenue — before
dealing profits^-in the second
six months at £940.000 was sub-
stantially greater than the first
half & £536,000.

"Th® loll owing comparts* have n«i.
-fted d«ie« of bos/d meetings to the
mock Exchange. Such meetings etc
irourtly held ior the purpose ci con-
Siffonng dividends. Official' indications
ete not available av to whether the
dividends are intunme or finals end the
E»bdivrs.nn* shown below are. based
mainiy on last year's timetable.

, TODAY

Inurims~-Ang1ia Television, Ernest
Jones (Jewellers). Arthur Las. Notting-
ham Brick, Polly Peck.

Fi nely E. Austin. Beil -and Shite,
Chubb. Ferranti. Kicking Pentecost.
Jernivn . Investment; Petfravr. Powell

BOARD MEETINGS

Dufliyn. - Ratal Beerrorrin.
Industrie*.

FUTURE RATES

Interims —

Butt 8 th there

Hijten

Vectia Stone -

F&iate—

Britioti Ter Products

Cecksedge

Dowry

Beciraeomponems

LAC intern* Bona!

Soott (Doirid)

Tunnel Holdings

t Amended.

. July 1
. Juno 30
. June 28

. July t
.fJuly 2
. July 15
, June 28
atJtllV 5
. July 8
June 24

Full year tax took £351,000,
against £560,000, after which
slated earnings per share were
7.61p (5.1Bp).

Capital items not charged;
were: on investment properties
£86,000 loss (ml)*arising op sales
and £942,000 (£L3m) surplus
arising as valuation profits;
£307,000 gain (nil) on overseas
loan stock redemption; exchange
loss £L98m (£22,000 profit); tax
£25,000 (£53,000 credit); and

sundry capital debits £37,000
(£94,000).

The UK portfolio has not been
revalued.

Midyear taxable revenue was
marginally higher at £633,000
(£6214)00) . and substantial
interest savings were anticipated
In the second half following the
reduction of a U.S. loan.

The group's principal interests
are commercial property deve-
lopment and investment

s MM{

;- 0 v ■

. * - J - 1 *- 1 ’*! fell

• l; ■ • tp--»

Ifci.

;. f zm t ■

'■ •-*

. v :

• - '"V-V* 1

-■-dug;.

- ■ -

Countryside ahead 30% midway

shopping centre to be held for
investment by Countryside
Investments.

Several more sites have
recently been acquired for
commercial -and industrial
property schemes which are pro-
grammed for development over
the next • two to three ‘ years.
These include an office scheme
of 26,000 sq ft at Waltbkm Cross
on which construction has
recently commenced, another
office development of some
30,000 sq ft at Brentwood, and
an industrial - development of
about 60,000 sq ft in a first-class
location on the Kingston By-

•• 'ana,

s exchange

INTERIM PRE-TAX profits of
Countryside Properties have
risen by 30 per cent from
£407,000 to £531,000 and it is ex-
pected that the result for the
current year ending Sept-
.ember 30, 19S2 will exceed the
' record £L32m of . 1980-8 L
. .. Mr Alan Cherry, the chairman,
"[ says the profits forecast has re-
'.gard to the business achieved so
_far this year and the level of
V hmising and commercial property
- sale completions programmed for
7 the remaining period.

^ Turnover for this commercial
. ‘ property development and house-
; building group was some 8 per
■ cent lower at £6.19m for the half
year- This reflects mostly the de-
pressed housing market, which
showed signs of gradual improve-

I SPAIN

T . Pnce

June 22 % +or-

Banco Bilbao 352 —3

Banco Contra! 328 ~9

I Banco Exterior 203 —3

Banco Hkparro 316

.Banco Ind, Cat .113

Banco Santander 339 -9

r Banco Urqui.ro 184 —3

Banco Vizcaya 384 —5

Banco' Zaragoza ..... 244 —1

Dnrgadoa ' 120 —6

Espurrola Z&tc 69

Facsa 632 -2.3

€ai; Pracrados 32 —1

Hitfrtrta 53.7 -2.5

Ibsrdusro 50.7 —0.3

PMroteos 77 —4.5

PotraHbor 101

SogefiM 6 — t

Telefonica BB.2 — OJB

Union Bott : 5G.7 -2

Charter ConsoGdated PJLC.

Final dividend and consolidated profit statement
for year ended 31 March 1982

"The board o? directors has today resolved to recommend to the annual general meeting of
members to be held on 10 August 1982 a Anal dividend o£7.25p per share in respect of the year ended 31
March 1982 (1981 : 6.6p per share), payable to shareholders registered in the books of the company at

men! only in the last month or
so.

Suited half-year earnings per
25p share rose by 2p to S-3p and
the interim dividend is stepped
up by 10 per cent to 1.54p (l~4p)
net per share — last year’s total
payment was 3-85p.

Interest charges for the period
were little changed at £536,000
(£538,000). Tax charge was
£40,000, against £36JHX). giving
net profits ahead by £120,000 to
£491,000. - Dividends absorb
£92.000 (£84.000).

Daring the first half, the
Rain&ford House office scheme at
Chelmsford was let and the sale
of the freehold to the Merchant
Navy Ratings Pension Fund was
finalised. Since the end of the
half year the' office development
at Pilgrim House, Billericay, has
been completed and let and the
group has sold its freehold
interest in this property.

The supermarket development
at Hadlelgh is on programme for
completion later this year and
contracts have been exchanged
for a sale of this property when
completed to Safeway Food '
Stores.

The town-centre ' shopping
scheme at Deal, which the group
is project-managing and building
for its associate j company.
Countryside Divestments, is also
making goad progress. This
development is to be let as a
whole on completion to Key .
Markets and. .will be the second

In the housing market, the
much higher involvement of the
banks in the home loan business,
along with the continuing sub-
statnial contribution by building
societies, ' is bringing greater
stability to the supply of money
for house purchase. If further
reductions in mortgage interest
rates occur, both demand and
orices are likely to rise with
benefit to the group's house-
building programme.

The group continues to confine
its . residential development
activity to the south-east region
within a 80-mile radius of central
London and has recently been
successful Ip achieving some
further excellent residential
development opportunities with-
the acquisition of a . number of
sites- in .prime, locations.

dividend lor the year will be Ilppershare, equivalent to 1 5 .7 1 428p w ithassociated tax credit (1981; lOp
equivalent to 14.2837ip with associated taxcredit). Dividend warrants will be posted on or about II
August 1982. *• - ‘

- The following unaudited results of the company and its subsidiaries for the year to 31 Marchl952
are issued for information in advance of the annualieport and accounts which will be posted to
members on or about 8 July 3982.

Consolidated profit and loss account

for year ended 31 March 1982 m

Operating profit pf industrial and mining sufandiaries ...............

Income from investments

Associated companies.. ....... — — - -

Other investments..........

Retained profits of associated companies..

Surplus on realisation of investments -

Interest receivable — ... — ..................... ............

Deduct:

A dmini stration and technical expenditure ,

'Prospecting expenditure- — —

Interest payable

Profit before taxation^. —

Taxation

Charter group —

' Associated companies... ......

Profit aftertaxatMm and before extraordinary items .
Deduct: '

Minority interests

Profit sharing scheme. -

1982

£000

.13,490

9,276

13^35

22,611

164*82

11,552

7,934

72,569

5,035

968

7339

13342

59327 .

13,468

6,034

19,502

39,725

1981

£000

13,615

6,680

10,994

17,674

15,416

8,037

9,005

63,747

“435 T

531

5,874-

10356

52,791

71324

7097

344170

Satisfactory
results
expected by
Espley-Tyas

FOR THE sfx months to March
, 81 1982 Espley-Tyas Property,
Group returned pre-tax profits of ;
£L2m on turnover of £23.16m-
, Stated earnings per 25p share on
> a weighted average basis were
i 6.21p and a net interim dividend
of L5p is declared.
f There- are no- comparative
■ figures— the company com-i
\ menced trading in February ]
i 1981. However,' for the period to |
i September SO 1981 the group
^ made taxable profits of £2 .28m,
which compared with a forecast
* of £1.6m.

Since then numerous trans-
1 actions have been undertaken.

the effect of which has been to
i eliminate all significant minority
interests in subsidiaries.

Mr R. A. Shuck, the chairman,

1 says the group’s performance in
the first six months of the
1 current year indicates that it “ is
! well on course ” to achieve satis-
factory results.

He points out that the group
has maintained a policy of ex-
panding commercial and In-
dustrial property development
and investment activities and
. will shortly commence develop-
ment of a major project in
Bristol.

Hie project, which will com-
, prise 117,000 sq ft of office
accommodation, is being funded
by the Prudential Assurance
Company. The Investment value
of the completed scheme will be
£Mm.

- Overseas, the group’s com-
panies in Europe and North'
America are making satisfactory
progress and the board views
their long-term potential with
confidence.

Construction activities con-
tinue to make a significant con-
tribution to profits. A healthy
order book will see the group
well into next year— emphasis
being on negotiated design and
building products.

Mr Shuck says the recently-
announced corporate and man-
agement restructuring, follow-
ing the acquisition of minority
interests in Manston Develop-
ment Group and Espley-Manston,
will enable the group to take
full advantage of opportunities
for growth in naming s and
assets.

After tax and minorities
attributable profits for the six
months emerged at £720,000.

Midterm fall
at J & H B
Jackson

PROFIT before tax at J. and
H. B. Jackson, metal merchant,
forger and engineer, was down
from £1.78m to £L68m for the
six months to March 31 1982. on
turnover of £13.9m, against
£15 mi

The interim dividend is held at
0.75p net per share. Last year’s
total of L6p was paid from pre-
tax 'profit of £23Sm. Earnings per
5p share were given as 337p
(3J55p).

Do addition, profits of £186,000
have so far been realised on sales
of quoted investments, against a
figure of £221,000 for the full
preceding year.

Tilley Lamp at
£48,000 after
six months

FOR THE half year to March 27
1982, TU|ey Lamp made a pre-
tax profit of £48,000, against a
loss of £70,000 in the correspond-
ing period a year earlier and a
£42,000 profit for the full year.

Turnover advanced from
£992.000 to £L49m.

The close company, which
makes light engineering products ;
and camping and leisure
accessories, is a subsidiary, ot 1
Stonebage International BV of 1
the Netherlands.

The dividend is omitted, as it
was for the full preceding year.
Earnings per 25p share are given
as 9.28p, against losses of 15.22p.

The directors say the low level
of orders gives cause for con-
cern, and has resulted in the
recent announcement of more re-
dundancies. The company last
year cut its workforce in half.

The pre-tax profit was struck
after depredation of £54,000
(£53,000), interest payments of
£33,000 (£86.000) and excep-
tional debits of £27,000 (£5,000).
There was again no tax charge.
Trading profit was £162,000,
against £54,000.

Strong second half
pick-up leaves GEL
profits at £3.14m

Jermyn

Investment

PtoSt attributable to Charter. — ..... — —

Earnings per sbhre 35£p (1981: 3Llp)

Dividends of Up per share (1981: lOppershare)

Profit for the year retained before extraordinary items .
Extraordinary items — . — — •• — «i——

profit transferred to reserves —

Notes:

1. OpeartHag Profits _ • - •

2,098

37,627

11358 -

26,669

(5,568 )

20301

32394

10,497

22,097

49336

7L433

S profits for 1982mdade for tb e first time profits of Alexander Shahd and Berak Tin and
■ ..rriv-; t; nn 1 hd di arv comnan tes d ur in;: the Year. •.

1

the Shand group. . •

^ tax for the year were £ 40.3 miltf cm compared with £36D^nIHion for 1981.

- ^StSorofiS Sb^iSveto cSSSrwere £ 21.1 millipnj^r share comp«eawhh^l7.7

S^(oer&h^l6^).Funcaire^costaccounisi^bemdudedmtheaimualr^XMtlbrim

- Charter Consolidated Services limited
P.O.Box 102, Charter House, - •

Streep Ashford, KieirtTN248EO •

22 June 1982

C3nrtCTO»m)iiMed PL-C-
D.S. Booth
..'-'Secretary

Kcgist^ed Offices
40 Holbom Viaduct, London EC1P 1 AJ

Pre-tax profits at Jermyn In-
vestment rose to £39300 for the
14} months to January 31 1982
against £34307 for t be year to
i November 15 1980. Net dividend
: per 25 p share was maintained
at l325p.

Tax was down at £3,571
(£12,636) and net extraordmary
credits amounted to £10,183
(£15316). A sum of £13337
(£15316) was transferred to
capital reserves.

Earnings per share were
stated at 3.57p compared with
2j.7p last (ame.

GRANDMET

The recent rights issue by Grand
Metropolitan has been accepted
in respect of 70.99m new ordi-
nary shares, or 95 per cent
Shares not taken up have been
sold in the market at a premium.

YEARONGSJ3|%

■nie interest rate for this week's
issue of local authority bonds is
131 -per cent, up '-three eights .of
a point from last week and com-
pares with 13} per cent a year
ago. The bonds are issued at par
and are redeemable oh June 29,
1983.

A full list of issues .will be pub-
lished in tomorrow's edition.

A STRONG second half at 'GET
International, specialist engineer,
brought pre-tax profits to £3. 14m
for the year to March 31 1982,
compared with profits of £3. 48m
previously.

After being 52 per cent down
at halfway second half profits
rose 24 per cent to £2. 42m —
more profits traditionally come
in the second half.

“Tor us, but not for everyone -
in the' engineering sector, trad-
ing conditions and profits' are
getting better,” says Mr Thomas
Kenny, chairman. He says that
order books at the year end were
at the highest level since 1980.

Turnover for the year stood at
£54.7m against £55. 32 m. with
exports accounting for 16 per
cent of the total.

The dividend is maintained at
531 5p with a repeated final of
3.555p net Earnings per 20p
share, after tax payable and
deferred, were given as rising
from 5.6p to 6. Ip.

All divisions were profitable,
but Mr Kenny points out that
strikes caused some reductions
in profits. A strike at one major
customer for wheels lost GET
£150,000 in profits and a small
engineering company strike
reduced profits by £300,000.

Packaging machinery bad a
“ snlendid ” year says Mr Kenny
and in the Midlands steel
products earned money compar-
able with last year. Despite the
spread of customers it was not
possible to maintain margins but
market share is unchanged, he
adds. *

Tax took £Llm '(£1.2lmV
before a deferred tax credit of

£112.000 (debit £343,000)'. After
tax profits rose 12 per cent to
£2J6m.

Net cash balances at £5. 64m
compare with £5.96nu Mr Kenny
points out that the balances have
been maintained after spending
almost £2m on new plant and
equipment

On a current cost basis pre-tax
profits . fell from £L7m to
£414,000. and losses per. share
after .tax were sbovra as 1.9p
(earnings L4p).

• comment

After a miserable first six
months, GEl's strong second half
recovery left the company only
10 per cent down on the previous
year’s profits and well ahead of
most expectations, the share price
adding 7p to a 1982 high of 82p.'
Order books at the year-end were
21 per cent up os the comparable
figure, but a return to something
like the £6.8m profit of two years
ago will not be seen this year.
Packaging machinery put in the
best performance, with a 41 per-
cent trading profit improvement
to £L2m. GEI is keen to acquire
a U.S. foothold in this area, as
soon as interest rates drop to a
more “ realistic " level. With the
exception of some of the steel
companies, GEI is now back to
full-time working, but over the
year as a whole the wage bill
actually fell. GEI, as always, has
plenty of liquid resources, but
there was enough debt to make
it — to the tune of £53 .'000— a net
payer of in teres L The main-
tained dividend yields 9.6 per
cent.

A.BJV. Bank ;..... 121%

Allied Irish Bank 12*%

American Express Bk. 121%

.Amro Bank 125%

Henry Ansbacher 121%

Arbuthnot Latham ... 121%

Associates Cap. Carp. 13 %

Banco de Bilbao 124%

BCd 12* %

Bank Hapoaiim BM ... 121%

Bank of Ireland 12A%

Bank Leomi (UK) pic l2t%

Bank of Cyprus 121%

Bank Street Sec. Ltd. 14 %

Bank of N.S.W 121%

Banque Beige Ltd- ... 121%
Banque du Rhone ct de

la Tamise SA 13 %

Barclays Bank 125%

Beneficial Trust Ltd — 135%
Bremar Holdings Ltd. 131%
Brit. Bank of Mid. East 121%

I Brown Shipley 13 %

Canada Pennt Trust:.. 13 %
Castle Court Trust Ltd. 13 %
Cavendish G'ty T"st Ltd. 14 %

Cayzer Ltd. ...: 12£%

Cedar Holdings 13 %

i Charterhouse Japhet ... 12?

Cboulartons 13 %

Citibank Savings If 12 5 %

Clydesdale Bank 12?%

C. E. Coates 13 i%

Comm. Bk. of Near East 121%
Consolidated Credits... 13 %

Co-operative Bank *12J%

Corinthian Secs 12? %

The Cyprus Popular Bk. 12j%

Duncan Lawrie 12?%

Eagil Trust 125%

E.T. Trust 13 %

Exeter Trust Ltd lS?%

First NaL Fin. Corp--. 15? %
First Nat. Secs. Ltd.... 15?%

Robert Fraser 13 %

Grindlays Bank 112?%

■ Guinness Mahon 12l%

■ Ham bros Bank 121%

Heritable & Gen. Trust 12i%

■ Hill Samuel §121%

C. Hoare & Co tl2}%

Hongkong & Shanghai 12 1%
Hinssnorth Trust Ltd. 14 %
Knowsley & Co. Ltd. ... 13 %

Lloyds Bank 125%

Mali inh all Limited ... 125%
Edward Manson & Co. 135%
Midland Bank 12?%

■ Samuel Montagu 125%

■ Morgan Grenfell 12?%

National Westminster I2i%
Norwich General Trust 121%

P. S. Ref son & Co 12?%

Roxburgh c Guarantee 13 %

E. S. Schwab 13 %

SI a ven burg’s Bank ... 12? %
Standard Chartered ...|[12?%

Trade Dev. Bank 12?%

Trustee Savings Back 121%

TCB 121%

United Bank of Kuwait 12?%
Whiteaway Laidlaw ... 13 %
Williams & Giya’s ... 121%
Win trust Secs. Ltd. ... 124%
Yorkshire Bank 12? %

M Members of the Accepting Houses
Committee.

• 7-day deposits 9.5*V, 1 -month'

9.75*4. Short term £8,000/12
month 12.1*4.

t 7-day deposits on sums of: under
C10.000 9 *b*«. £10.000 up to

£50.000 10V... £50.000 and over
IT.',.

t Cell deposits £1,000 and over

9 * 2 * 4 .

B 21 -day deposits over £1,000 10*2*4'.

§ Demand deposits 9V4.

9 Mortgage base rate.

Silentnight Holdings

DIVAN BEDS, UPHOLSTERY AND EURNTTURE

ISU-EMTTWGHTl

G. B. Papers losses ease
to £133,000 at year end

AFTER half-time gains at G B
Papers, formerly Culter Guard
Bridge Holdings, from taxable
losses of £903,000 to £5,000,
results for the year to March 31
1982 show a continuing improve-
ment. Losses of this paper
maker and converter were
reduced from £I26m to £133.000.

The directors point out that
sales and production were
seriously redjxced by low biui-.
ness activity during December
and January, partly because of
the severe weather and the rail
strike. Turnover for the year
fell from £23.59m to £18.91m.

At the trading level continuing
operations showed a. profit of

£217,000, against previous losses
of £347.000, and kisses last time
from discontinued operations of
£696,000.

There is again no dividend —
the last payment was 0-5p- in
1980.

Attempts to sell the site at
Peterculter for industrial use
have not been successful, say
the directors. Refusal for plan-
ning application has been lodged
with the Secretary of State for
Scotland.

Largely because of the
security and other costs
associated with, the ate, there is
an extraordinary debit of
£ 210 , 000 .

| Yearto: Jan 1982

£000

Turnover. 72,794

Profit before tax. 5,1 1 0

Profit after tax. 4,776

Profit attributable toisha reholders. 4,776
Earnings per share. 21 -2p

Dividend per share. 5.0p

Jan 1981

£000

65,926

3.038

2,209

890

9.8p

3.5p

Copien of the 1SSU Annual Report air a » adabh from The Secretary,
SJL0iTWGKTHOtDWGSPLC,WBLLHOUS£RD, BARNOLDSWiCK, COLNE, LANCS. BB86DR.

Honeywell
advanced tech

s future

It doesn't take a genius to
see that our future lies in
greater efficiency, output
and cost effectiveness.

This means bigger and
better plant it also means

sophisticated energy

saving control systems,
for energy costs are still a
major issue. A key to reduc-
ing energy consumption
is advanced technology
based on micro-electro-
nics. Itis this technology
Honeywell offers to
commerce and industry
throughout the UK. and
Ireland. It can reduce
energy usein buildings by
i5 to 30 % - no matter how
new or old, howbig or
small, or what functions
they perform. Payback
time is several times faster
than it was for pre-1970
controls. Amortization of

? : < ,** :i

W- < *•

wmt

energy is the cheapest,
most readily available
source of alternative
energy. Honeywell ad-
vanced technology lets
you tap this source. And,
when future conditions
demand controls of greater
scope and sophistication,
Honeywell will supply them.
Think about Honeywell. It
could help to shape your
future.

installations can be as little
as six months and rarely
exceeds two years. Of
course, energy and cost
savings go on and on.
Honeywell advanced
technology is about
people, too. It lets them .
enjoy comfortable temp-
erature, cleans the air they
breathe and keeps tiiem
safe - for we have a sys-
tem that manages the
security and services of up
to 100 buildings atatime,
24 hours a day. Saved

r

For more information:
Honeywell Control Systems Ltd.
Communications Department
Honeywell House,

Charles Square,. Bracknell
Bercks-RG 121EB
United Kingdom
TeL (0344) 24555 ext 581

Honeywell

Financial Times Wednesday June 23

* ~

• New Issue
S June 23, 1982

This advertisement appears
as a matter of record only

| City of Copenhagen

! DM 75,000,000

i 9!4% Deutsche Mark Bonds of 1982/1992

Z Offering Price: 99#%

Z Interest: 914% p.a„ payable annually on June 15 ...

Z Redemption: annually, beginning on June 15, 1985 through purchases in tna market ordrawings of senes by lot at par

Z Listing: Frankfurt am Main and Hamburg

Deutsche Bank

Aktiengasellschaft

Prrvatbanken A/S

- Algemone Bank Node Hand N.V.

• Arab Banking Corporation (ABC)

• Julius Baer International

• Limited

S BankffirGememwirtschaft

• Aktiengesellschaft

Z Bank of Tokyo International
J Limited

S Banque Gfin§rale du Luxembourg SJL
j Banque do Neuflize,Sch I uni burgee Mallet
Z Banque derUnunEurapSenns

Z Bays rise he Hypothekan- und Wschsel-Bank

2 Aktiengesellschaft

• Joh. Barenberg, Gossler&Co.

- Berliner Handels- und Frankfurter Bank

■ Commerzbank

■ Aktiengesellschaft

2 Creditanstalt-Bankverein
2 Deutsche Girozentrale
2 - Deutsche Kommunalbank-

2 Effect en bn nk-W.irburg
Z Aktiengesellschaft

• Girozentrale und Bank der

■ dstsrraichischen Sparkassen
2 Aktiengesellschaft

• Georg Hauck& So hn Bankters

2 Kommandtrgesellschaftauf Aktien

• Hill Samuel & Co.

» Limited

2 Kidd er, Peabody I nte mational

• Limited

2 KredietbankS.ALuxembourgeoIse
2 Landes bank Rhein land-Pfalz
2 - Girozentrale -
2 Lehman Brothers Kuhn Loeb
2 International, Inc.

2 B. Metzfer seel. Sohn&Co.

2 Morgan Guaranty Ltd
2 The Nikko Securities Co„ (Europe) Ltd.

2 Nordflrranz-Bank ZOrich
2 Orion Royal Bank

• Limited

2 Scandinavian Bank

• Limited

2 Skandinaviska Enskilda Ban ken

Amro International Limited
Am hold and & Bleicbroodar, Inc.

Banco del Gottardo

Bank Leu International Ltd.

Banque Bruxelles Lambert S.A.

Banque Indosuez

Banque de Paris at des Pays-Bas

Baring Brotheis&Ca,

Limited

c Bay e rise he Landesbank
Girozerrtrale
Bergen Bank A/S'

Cazenove&Co.

Credit Commercial de France

Daiwa Europe Limited
DG Bank

Deutsche Genossenschaftsbank
Euromobiliara S.pJL

Goldman Sachs International Corp.

R. Hanriques Jr. Bank-Aktiaselskab

Industrlebank von Japan (Deutschland)

Aktiengesellschaft

Kleinwort, Benson

Limited

Kredietbank (Suisse) S.A.

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Girozentrale

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Samuel Montagu & Co.

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Nordic Bank PLC

Pierson, HeldringftPieraon N.V.

2 Socfetd Gdndrale de Banque SJL
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2 Verains- und Wfestbank
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Schrdder, MQnchmeyec Hengst&Co.

Smith Barney, Harris Upham ft Co.
Incorporated

Svenska Handslsbanken

Union Bankof Finland Ltd.

M.M.Warburg-Brinckmann,Wirtz&Co.

Westfalsnbank

Aktiengesellschaft

"Vamaichi International (Europe)

Limited

Andelsbanken A/S Danebanfc
Atlantic Capital
Corporation

Batik of Am erica International
Limited

Bank Maas & Hope NV

Banque Fmtt^alse du Commerce ExMrieur

Banque Internationale 6 Luxembourg SA,
Banque Populaire Suisse SA Luxembourg
K Albert de Bary ft Co. N.V. '

Bsyerische Vbroinsbartfc

Aktiengesellschaft

Berliner Bank

Aktiengesellschaft

Christiania Bankog Kradltkasse

Ci-6d it Industrie! (TAIsace ot da Lorraine '

Delbrflck&Co.

Dreadnar Bank
Aktiengesellschaft
European Banking Company
Limited

HambrosBank

Limited

Hessisehe Landesbank

-Girozentrale-

KansalUs-Osake-PBnkld

Kredietbank NAL

Kuwait Investment Company (&A.K.)
Lazard Fr&ies at Oe

Merrill Lynch Int e rnational ft Co.

Morgan Grenfell ftCo.

Limited

National Bank of Abu Dhabi
Norddautscha Landesbank
Girozentrale
SaL Oppenhelm jeftde.

PK Christiania Bank (UK)

Limited

J. Henry Schrader WfeggACo.

Limited

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Swiss Bank Corporation International

Limited

Union Bankof Switzerland (Securities)

Limited

S.G. Warburg &Co. Ltd.
Wood Gundy Limited

■<maaaaaauaauaaaaaaaa»eaaaaaaaaaaaaaaaaaaa*aa8a8aaaaaa«aaaaa«a*aaaaaaaaaaaaaaaaBsaaaaaMaa*aaaaaaaaaaaaBaaaaaaaa*aaa'

ENERGY REVIEW

Colombia’s rich

By Sarita Kendall in Bogota

COLOMBIA’S, energy outlook
is exciting enough to make
other Latin American countries
— and even Venezuela — envious.
It is also the key to econouate
growth over the next 20 years,
for apart from supplying
domestic need s a nd boosting
national industry, substantial
foreign earn tngs and an escape
from dependence on coffee
exports are promised by
energy projects.

As Sr Carlos Zambrano, acting
Minister of Mines and Energy,
puts it: “ Colombia has a very
rich potential. We • have
developed less than 5 per cent
of our hydro-electric potential,
and the country has 40 per cent
of Latin America’s proven .coal
reserves, even though only
seven of our 35 coal deposits
have been evaluated so far."
Add to this the fact that oil
self-sufficiency is within sight,
and natural gas production far
exceeds In c*ad needs, and the
resulting picture is impressively
varied.

The scale of Investment
required to explore and develop
these energy resources is
enormous, and more than half
the funds will have to coxae
from international agencies and
foreign hanks. But Cotoutbia's
reputation as a conservative
i borrower and the standing of
th*» main state energy bodies are
important pluses. Earlier this
year the World Bank awarded
its biegest ever loan in Latin
America — U.S^359m — for a
| j.BOO Mw hydro-electric scheme
near Bogota, while the state
mal company, Carbocol, has just
received a U.S.$160m credit
; from Canada’s Export Develop-’
merit Corporation. A U.S.JlOOm
loan being arranged by Lloyds
Bank is in prospect.

Only recently has Golombfo's
niitfonk on the energy front
become so optimistic. It became
an oil importer in ' 1975 at the
worst possible moment when
international prices were begin-
ning to soar and local consump-
tion was growing at over 7 per
cent a year. Until -recently fore-
casts were projecting alarm-
ingly high import bills, but the
last two years have seen a com-
plete- turn-around in the oM
sector.

According to Sr Jose
Fernando Isaza. president of the
state nil company Scope trod:
“ Maximum imports' ■ were
reached two years ago. Now
there will be' small reductions in
oil imports year by year for the
next few years. Instead of
dwindling reserves and falling
production, we have crude pro-
duction up by 10 per cent in

the first five months of the year.
Kid consumption is only mere as-,
ing at 2.5 per cent, a year.” , .
. In 1978 crude -off reserves
dropped to 378m barrels.: but
an intensive oil exploration pro-
gramme has brought them back
to 8S0m barrels. . Increases in
the prices, paid for national
-crude,- combined with attractive
exploration . contracts, ’ have
drawn foreign companies to
Colombia, and at the end of
1981 Ecopetrol bad over 40 joint
venture contracts oh its books.

Last year -61 exploratory
wells' were drilled with com/mer-
cJafl crude discoveries in 14 of
them and natural gas in two
more. This year the target is
100,' with investment, probably
running to over 9300m and
Ecopetnri itself taking an in-
creasingly strong .role in. ex-
• pi-oration .particularly in lower
risk areas.

Although much of the drilling
continues to be concentrated in
the country’s traditional crude
producing area— -the Magdalena

Valley— a completely new
region has been opened up: in
the eastern Bains, or Llanos,
Exxon. Elf -Acqtri tain e and Eco-
petTol have made significant dis-
coveries. With these fields in
production. Sr Isaza estimates
that Colombia can be self-
sufficient again in 3986.

Development costs will be
heavy, and a pipeline across the
high Eastern Andean range to
the Barranca-Bermeja refining
centre will have to be built.
Only partial tests have been
run so far. and production
levels are uncertain. The Arauce
field near the Venezuelan border
has involved drilling to 20,000
feet and below for, the first time
in Columbia, at a cost -of some
$20m a well.

Crude production is running
at a little over 140,000 barrels
a day this year, and total
imports • including refined
products are expected to be just

under 50,000 b/d. In 1981
Colombia spent 9682m on Im-
ports. offset by exports (especi-
ally fuel oh) worth 9337m.

Despite the. success of oil ex-
ploration efforts, and the fact
that foreign ' companies are
optimistic about further finds,
the Government is determined
to diversify. Hydro-electric
schemes are going ahead as fast
as the red tape win "allow. Hydro
resources, are gradually contri-
buting a greater share of total
energy needs, rising from 17
per cent in i960 to 25' per. cent
in 1980 and expected to reach
30. per cent by 1990.. .

Inadequate . planning and -
delays in some key projects led
to rationing periods of up to
three boors a day last year, but
unusually heavy rains have re-
filled reservoirs. Willi the
economy growing at today’s low
rates — 2.5 per cent in 1981 —
electricity - demand forecasts
have been brought down, and
serious bottlenecks, later in the
decade should- now be avoided.

To try to ensure coherent
long-term planning for the
energy sector. President Julio
Cesar . Torbay’s Government
commissioned a national* energy
study, . which caxne out
earlier this year. -Though the
study marks an important step
- forward in providing an overall
policy framework, critics believe
it is too optimistic about the
' role that can be played by
Colombian institutions. Its slant
■is considerably more nationalis-
tic than current policy, and
some of. the proposals to curb
joint venture schemes involving
foreign companies are con-
sidered, unrealistic.

In particular, the study recom-
mends that the development of
Colombia's coal reserves be
entrusted to Carbocol, with the
adoption of service rather than
association contracts. This
suggestion reflects criticism of
Carbocoi’s agreement with the
Exxon subsidiary Intercor for
the exploitation of the huge
Cerrejon deposits, which was
thought to be over-generous in
some circles. -

The $3bn northern Cerreion
project..' in. the Guajira region
is already, under Way- A ^150-
kfiometre road adjoining the
mine and the port rite at Bahia
de Portete has been completed,
and the master contractors—
Morrison-Knudsen— are calling
.for. bids on a number of fronts.
The deposits, with reserves of
1.6bn tonnes to a depth of 200
metres, will be mined in open
pit style with production
beginning in 1986 and rising to
15m tonnes a year.

A bread gauge "“team wS
take the high Jhich will

to Bahia de pcirt *'!t' r \ „f lft.OflO
have a loading cap- - Carbnml
tonnes an hour. Botn^
and Intercon D ^ ritracrs

tinting export . - ,re

and gras 5 f^rej™ and

forecast at "won,

$ 5 . 1 bn for the - oduc tinn

Smaller scale : ioa. F- ° j

* More the end

zone of y-rrjfJ" . h _ contract
of ish -Colo m bian

with y> e nnmint-Prodeco-

consornum exploitation of

Auxuni for The t T tQ slarJ

S’moSo ® S 3 the

power stations. rolom-

Some experts believe
bia could be suppi.wn \ P
cent of the world coa
bv the end of the cenluo— 1 "^
i * exporting uv to lOOrn 1 p
a vear Apart from the
Cemsjon reserves, »-hirh rrn».n
untouched, there are oiaj -
steam coal deposits at i--
Jarua, San Jorge and in
central area of Colombia, -jj-
last region is also rich in cnkin-
coal, but there is no immediate
prospect *f large-scale exploita-
tion because of transport prob-
lems.

Colombia's geology and min-
ing institute. Ingeominas, b.i-
estimated reserves of L-oal At
lT.Tbn tonnes, though the stud:-
was limited to seven areas. Bu
there are financial and institu-
tional reasons for not embark-
ing on a plethora of gigani!'.
coal ventures at the same time,,
and it may be prudent to wa:t
for Carbocol to build up experi-
ence at Cerrejon first.

' Not all Colombia's eiiers"
projects are as large as those in
tiie coal sector. The Centre for
Research in Appropriate Ter:
oology at Las Gaviotas in ti-‘
Llanos has put on to the market
its first commercial model of
windmtU for supplying sma!!
households with electricity in
the remote areas where power
lines do not and may never
reach. Alternative enerz:
sources are now in fact taken
seriously enough for Presiden:
Turbay to have installed a sola;
energy system for heating water
in his*private residence, and two
major housing schemes incor-
porate solar panels.

.With its immediate prospect
already bright. Colombia u
well positioned astride the
Equator for any future develop-
ments in the technology of
profiting from tbe power of the
sun.

COMPANY NOTICES

(SABj THE SOUTH AFRICAN BREWERIES LIMITED

(tacoi pot alod in (he Republic at South Alt tut)

MOTICS IS HEREBY GIVEN ih«i thp annual general meeting of members of this Company in reepect of the
■ear e.i-.ie-l LI Maroi TTO2 will be held a: 2 Jan Smuts Avenue. Johannesburg, on Friday. 16 July 13a2 at
1 JhC*> lor the follaAtn^ purposes, namely.

1. receive and adopt iho trn-jp annual financial statement* for the year ended 31 March 1982.

- To elect Messrs. A D P Bcflam/. R. 5. Cohen. D. Gordon. J. M Kahn and S. Kerzner Dirertois and to
re-elect the I olio wm 3 Directors who retire by rotation in accordance with the Articles of Association:

Dr F J. C Cronie and Messrs C Carrington. R. J. Goss and K. R. Williams.

5 T- Cfinlirm the acnon ol the Directors in iixmq the remuneration of the auditors lor the vear to 31 March
1931 ai RKj 014 plus aipenses of R3 617 and Id authorise the Directors to fix the remuneration- of the
auditors tor the past year.

4. To place 22 330 «l unissued ordinary shares of 20 cents each m the capnat or the Company under the
rontrol of the D-rectois, who will be authorised 10 allot those chares on such terms and conditions and
at such tuna, s as they deem lit. subioct to the approval ol The Johannesburg Stock Exchange.

5. Soeci.il Business

To p.i>-, -.he tolioanno resolutions, the reasons thereof being contained in the Report ol the Diroctora tor
the year ended 31 March 1952:

As special resolutions, with and/or without modification

5.1 THAT p-jr-.ij.in 1 to Clause 3 2. Chapter 3 of ihe Articles of Association n f the Company the 10 COO POO
uniss ied 5 6 redeem a hi c cumufctwe preference shares of R1 each in. the capital ol the Company be
subdivides into 50 000 QW redeemable cumulative preference shares of 20 cents each.

5.2 THAT, .-.ubioct in the passing ol 5 1. the 50 000 000 terieemablo cumulative preference shares in the
capital ol the Company be convened mio 50 000 000 ordinary shares ol 20 cents each, ranking
pari passu m all respects with iho OAistm^ ordinary shares ol the Company.

As ordinary resolutions-

5.3 To pl.ice the 50 OCO 000 unissued ordinary shares of 20 cents each arisirn from the above special
resolution, under the control of the Directors, who will be authorised to allot those shares on such
terms jnd conditions and at such time/s as thoy deem fit. subject to the approval ol The Johannesburg
Stock cacfianqc.

5 4 THAT the SAB Executive Share Purchase Scheme approved by shareholders in July 1374 be and it Is
hereby amended by —

5.4 1 increasing the number ol ordinary shares whicn may be purchased or eubacribad lor by the trustees

in terms ol clause 3 3 thoreol in 8 500 000: and

5.4.2 increasing ine number ol shares in respect ol which any participant may bo invited to apply to
acquire options from 150 000 10 300 000.

5.5 Pursuant m and conditional upon the passing of resolution 5.4.1. to place 3 500 000 ordinary shares of
20 cents each 1.1 the capital ol the Company at the disposal and. under the cnntral of the Directors of
the Company, who are authorised and directed to allot end issue ihe same to the Trustees of the SAB
Executive 5hftre Trust or their renouncees in accordance with ihe provisions of the 5AB Executive
Share Purchase Schema.

Any member entitled 10 attend and vole is entitled to appoint a proxy or proxies ro attend, speak and
vnta in his stead, and the person so anaoinred need not be a mombor. Proxy forms should ba. forwarded
to reach me registered affica ol the Company at least 48 hours bdore the time fixed for the holding ol

NOtIcE* 1 "!? ALSO GIVEN that the transfer books ol Ihe Company win be dosed from 12 ra IB July 1982.

2 Jun Smuts Avenue By order of the Board

Johannesburg 2001 B. C. V/AIGEL

26 May 1382 Gro “0 Secretary

V^TIreie are nn Directors' service contracts which ara required to be made available for inspection prior

?o the annual general meeting. ' . ,

n p r qxy forms lor use at the meeting may be obtained from the Group Secretary, Transfer Secretaries or
(jjndnn -Jerreraries at their rcsoective addresses set out on the inside front cover of the Annual Report.

3 A copy al the SAB Executive Share Purchase Scheme will be .available lor inspection at the registered
office of the company and the offices of the Transfer Secretaries and London Sscratertee prior to the
annual general mealing.

- ■ INTERNATIONAL DEPOSITARY receipts

REPRESENTING SHARES PAR VALUE

f! S2.SO COMMON STOCK

J- P- MORGAN & CO. INCORPORATED

^ Kingdom of Sweden

U.S.$ 150,000,000

Floating Rate Notes due December 19 88

In accordance with the provisions of the Notes,
notice is hereby given ihatforthe interest period
from June 21,1982 to December 21. 1982
theNoteswillcarryaninterestrateof 16% % per annum.

The interest payable on the reievantinterestpaymentdate»
December 2 1.1 982 against Coupon n°4
will be US$ 8,323-96 per Note.

Agent Bank

KREDIETBANK

SJL LUXEMBQ URGED ISE

PUBLIC NOTICES

HERTFORDSHIRE COUNTY COUNCIL
C5.CC3.0P0 Bill* ISUW on 2J Jo"T 13SS
at a rate of 12 1»G« 0 „ to mature on

22 September 1 9BZ. Total applications

were £Z?J 000.000 and there are
£2B.oati.ooo Bills outstanding.

APPOINTMENTS

ADVERTISING

appears

every Thursday

A ejiih distribution Of 50.B5 per Derail,
tnev share will be pavatle on and after
tn* 22nd July 196Z upon oresentation of
Coupon No, 47 at

Morgan Guaranty Trull Company of

New York.

30 Weil Broadway-

(Corporate Trust Department.

New YorK]

35 A*enoe Des Arts. Brussels

Mom an House. 1 Angel Court.

London

BZ trankrilVIel. Antwerp
■t the designated rate, less apoflcabla
raxes

This distribution Is l« reioart of the -
regular quarter I* dividend pavaMe on the
common shares P-V. SZ.50 J P. Ugrnji
eg. Cornea by Incorporated on the 1 5th
July 1982.

LEGAL NOTICES

NOTICE OF MEETING OF CREDITORS
PETER SWAINS LIMITED

NOTICE IS HEREBY GIVEN, pursuant
to Soction 293 of the Companies Act.
1943. that a Meeting of tna CrsditO's of
the above-named Company wilt be held
at The Bonnitiafon- Hotel. 92 Southamp-
ton Row, London, WC1, on Monday,
the 5th d*v of July 1382. Jt 1.30 a’elncfc

in the eltcrnoon. far the purposes
mentioned in Sections 233. 294 and
235 of the wW A?*-

Dated this' 1«h day of June 1982.
By Order Of tha Board,

D. ROWLEY,

Secretary.

INVITATION OF THE SHAREHOLDERS
OF THE

HELLENIC SHIP AND AIRCRAFT
INSURANCE COMPANY S.A.

TO THE ORDINARY
GENE RAL ASSE MBLY

HCLIFNtC SHIP AND AIRCRAFT
INSURA NCE COMP ANY S.A.

In attordannr wtth the Article* of
Awo-Utien No. 27 and 30. the Share-
holders of the ” HELLENIC SHIP AND
AIRCRAFT INSURANCE COMPANY
S A." are Invited to tha Ordinary General
Meetino whirh will be held on Monda*.
June 28th. 1982 at 11.30 hours at the
premises of our Head Office In 24. Stadlou
Strert {1st FhjnrJ.

Any Shareholder wishing to attend the
General Meetin-J must denos-t hl> shares
at the latest 5 davs prior to the abo»e
mentioned date pr the Meeting as fellows-
In Greece, wirh the Company's Cashhr-
pr with the Consignment Deposits and
Loans Fund or with any Banlr in Greece,
and

Abroad, with any one of M*e recoonhed j
fOrn-Qit banks. i

The A7>nHa of H»e General Meet 1 no hu
been s*t forth as hereafter-
fit Reoorl ot ihp Board of Dlrerrijr» on
ihe Company's arttsltfes riurlpy the
seventeenth year of arrovittl 19R1
and Balanre Sheet as at the 31 St

D~-.rml«pr 1981.

fZi Auditor’ - 'Wt on the Palsnca Sheet
as at Slst December t?ST.
t3l Annrpral pf the 19B1 admhllstra.
rmn as well as of tha Balance Sheet

as a* list Ooremhrr 1081 .
f4i Release from any liability whatsoever
for indemnity In ronnectlon saith the
S9R* admmlstratfo’i and »nh the
Paianre sheet as nt .31*1 December
1 981 '

fat of the Hoard of Directors and
the Managing Dlrertxr
fbl ol the Auditors.

!S1 Aooreval pf the remunar-allon of the
Members or the Board or Directors
to* rhr year of accounts 1981.
ffi) Election and hying of fees, for the
vear 1982 of two regular Auditors
tine of whir h must be a member ot
the Institute of Chartered, Account-
ants as weft as of an counl number
of substitutes.

171 Granting . of permission to the
Dim-tors and the Manpmant to he.
cpme members o* the Board and osr-
tfripjte in th» Management, or other
wise of other concern pursuing"
similar ohlects. r

THE BOARO OF DIRECTOR*
4th June.' 1982.

Ath-n*.

CITY OF LIMA .
fTht Honourable RedKlal Council
ot Lima!

S"i FIRST MORTGAGE BONDS 1911
NOTICE 15 HEREBY GIVEN that. lor the
sinking Frmd 1 of the above Loan for inly
mitZ. Ronds tv an original nomt-ial
amount of 51. mo have been purchased

and CA mn drawn for redemDthjn.

The follow mg are the numbers ot the
Fends dr.-ie" f v redemption cm 1 st J-j|v
1082 affrr which date all Interest thereO"
will reuse. Pay men* will hn madn at Hi-
new oar valnr- Of £171 per £100 Pond
Ip ai-Tordnmrr with thn RwuNlt Of Peru
Oder dale* 13th January I95S.

AT Ronds el MOffl
Original Nominal Valve fart
an 898 SOI T ISM 1174 1 798
1472 7540 S59R ST58 1T98 SUSS
7017 7179 2780 *327 241 S 287 J
2479 7R7B 288* 277* STJ4 3170
3299 J432 3709 3805 38M 4034
4125 4789 4791 4539 4378 4838
4881 4748 4884 5078 5152 5398
5418 5513 5681 5«T1 597*

Thn ahrvi- Ronds shouM he rrenent-d at
the London Offices Of Lloyds Rank Inter.
nations! Mmlfrd. listed on «te apnror-r'ate
ferms and must hear all cooPOns mSis-
nnaot *p 1-t Julv 1982 otherwise th-
amonnr of thy misslno roinpnns will in
Hrdnr>rrt from fha rerfamotlon wrorewt s

RESIDENTIAL PROPERTY

SWITZERLAND ]

AIGLE + VILLARS J

FOR SALE: Exclusive:
freehold properly, direct
from the Owner Builders bb

PERSONAL

REDUCTIONS

23rd June to
7th July

[Reductions on handbags,
scarves, umbrellas and
costume jewellery.

ASPREY CITY BRANCH

153 FENCHURCH STREET
LONDON, EC3
TEL- 01-626 2160

THIS TS THE AGE OF THE PLANS. Over.

"»»• ««, W'-tfF- T-MIt

Mxt umlfabi*.— Sample price London- CUas-

STsSgj . *<%*:

isa5Z G

Most riegamfiy deseed and built to
the highest standards. Swiss Government ™

finan rial and legal r^uIatkmsfuDy met for
sales to non-Swiss nationals.

Martgagesittoto 60 % over 20 years a£kw '.
interest rates.

Please contact Mrs Lidsler or Mr Maricb direct at

the CHoner-Buildera:.

IntmoblHere deVUlarsSA + SodimSA
P.O. Box 62, 1884 VUIars-sur-OIkm, Switzerland.-

01041 - 25/35 35 3lH^||
Trffoc 456213 GESECH

8-13 Park Avenue

, (Between 7 4th and 75th Street )

New York

An exdosive residential address
in Manhattan !

Condominiums (individual ownership) for sale in- a superb
twelve-store; landmark building, completely renovated:

— 12 luxury fully-equipped duplex and triplex apartments.
' — Construction completed end of June 19S2.

— Management on site available.

— Prime and unique investment

— Substantial mid-term property appreciation and net
income secured.

AMERICAN dry CONSTRUCTION CORP.”

12, Qienim Rien, CH-1208 Geneva
Tel: 022/47 08 47 Telex: 22801 CORA CH

Fort Worth — Dallas
Texas

Serious American land developer with references aim first 1
rate guarantees seeks:-

—Institutional or private financial partners for the
construction of two Bix-storey office buildings, right in
the heart of the Fort Worth commercial centre,- on
existing and~ fully-owned land.

— Interests paid yearly and secured by a first Class h*nfc
-• guarantee. -

— Developer guarantees cost overruns of the construction
budget.,

-—Profit-sharing guaranteed by. contract to all financial
partners. . • ■ ■

AMERICAN cars’ CONSTRUCTION CORP.

12, OhemliL Riea, CH-1208 Geneva '

Tel: 022/47 08 47 Telex: 22801 CORA CH

ST GEORGES HILL, WEYBRIDGE

A superbly situated family home of quality enjoying magnificent
views to the south, set in beautiful grounds of about 2 acres.

3 Reception Rooms, Games Room, 5 Bedrooms', 4 Bathrooms,
including 2 Bedroom Suites and 3 secondary Bedrooms.

HEATED SWIMMING POOL HARD TENNIS COURT
STAFF COTTAGE GARAGING. ..

£325,000 FREEHOLD , '

TEL. WEYBRIDGE (0932) 4142!

SWITZERLAND

FOREIGNERS can buy opai uncut* treahtHd on LAKE GENEVA. In Montrcux n#«r
La Dunns, or all-yeor-roumf -resort*: St. Cvraue near Geneva. VHlti-s. VerbJer,
Lex DttblHWtB. . LerMl. _«C. FINANCING 50-70% AT LOW INTEREST:. RATES.
AKo quality proMrtla* hi France: Apartment* in EVIAN on the lake, appro xt-
mitrtr 35 minute* from Genova, a at) luxrirtous villa# VERY NEAR THE BORDER
OF GENEVA, bbttt to your HMefftcation*. Advise area preferred.

• : Write to. DevetotMn do globe PLAN 5A

• Mon-Hopos 24. 1005 Lamaane, SwI U n land -
Tel: (231 22.35.TZ Telex: 25183 metis di

. WEST YORKSHIRE.
FREEHOLD RESIDENTIAL
BUILDING LAND-
■; FOR SALE '

A rare mooranttv occurs for prWate
dewloiwn to pure haw either of two
Sites both with ouUliw planning- P*r-
mlsiioii and both In popular residential
areas Tn West Yorkshire;

STONY LANE, GREETLAND. HALIFAX
11.05 acres easily serviced from exist-
- ing roods and adiolnbre ttie Green Belt.
It Is one of the last remaining unde-
veloped sites In the village ol Greet-
. land.

COCK KILL. SHELF. HALIFAX
11.08 acres Of gently slapping Und
enjoying magnificent uninterrupted
view*, of over 20 mlks and yet very
conveniently located for all' the ameni-
ties of the local community qf Shelf
and the towns of Halifax and Bradford.'

These two Sret.clasa residential sites-
iCi ‘ffsri.i.y °* ,Jv £1S.0O0 pee acre
and £22.poo per acre tn achieve a
speedy sale.

Further informatkM can be obtained '
from:

ESTATES AND VALUATION OFFICES. '
„ CALDERDALE- M-O-C..

- Peo a r b nawL. Prhrcnxu Stmt,
Halita. HX1 1TF. Tell Halifax 10422}
572S7 — Ur D. R. Booth. Ext. 3S73.

AMERICAN

EXECUTIVES

seek luxury furnished flats or
houses up to £350 per week
Usual fees required.
Phillips Kay & Lewis
01-839 2245

W. 8

LUXURY

2- AMD 3-BEDROOM FLATS

FOR. SALE
LEASE 125 YEARS
FROM £87300
TEL. AJLC, 01-229 0055

FINANCIAL TIMES

PUBLISHED IN LONDON FRANKFURT

Tta “ ****• ■mdrai Hem. 10 Cwu Street, Loo^a EC4P ttv
' 7Nix: NHI7L TAa. (AdrertWag^ K r t Talagmnu: FkMMbod, Loadin. Tr lull mu (1T.74P ■mn"

tSSSTtSs* S T "" b0mi 759M " »•*** Fra-kendhe

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elate. Tower ffirts to rent. unhroMred
44J5O0 *» £24,000 plBj Gottmany well- .
rations wrtama Ring 01-828 4372 or
0T-SW *110.

TRAVEL

TOKI ff. Q«ak« . ^Seocl. Talpd and Par East.

wweawrfreof d bcoont djatrts. Brochure.
Ja»M SwKac Travel. Q1-437 S703.

(KTCRKATtONAL & BRITISH EDITORIAL ft ADVERTISEMENT OFFICES

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46 2S

Financial Times Wednesday June 23 1982

Companies antf Markets

25

COMMODITIES AND AGRICULTURE

Producer group to 6 co

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« WONG SULONG IN KUALA. LUMPUR

OUTUNING THE planned tin
producers group here yesterday
Datuk Paul Leong, Malaysia's
primary industries minister,
explained that {introducing
countries needed a producers'
paet because they would be
vulnerable under a dracticallv
scaled-down sixth International
Tin Agreement (ITA).

' it was obvious that there
were situations with winch the
agreement could not cope- aw/i
|tae tin producers’ association
was intended to “complement
and supplement” the ITA in
insuring that prices "are
remunerative to producers and
. Air to consumers,” he said.

' ' Since only 51 per cent of the
consumer nations were pre-
pared to join the sixth ITA, due
jU> operate from July 1, the
amount of tin the buffer stock
manager could buy was only
34.000 tonnes instead of the
original 50,000 tonnes. The
. current market excess was
estimated at over 70.000 tonnes,
he added.

. The three South East Asian

tin producers. Malaysia, Indo-
nesia and T hailand which said
they wanted a producers*
association alongside The ITA,
will meet in Bangkok next
Tuesday to finalise the draft *f
tiie pact.

This dual approach was a
compromise between Malaysia,
which wanted to leave the ITA
and form a producers grouping,
and . Indonesia and Thailand
which wanted! to stay in.

Datuk Leong said the pro-
posed producers group aimed to
institute supply rationalisation
measures (a euphemism for
production cutbacks) and
buffers! ock operations in times
of oversupply. und ertake
research and development on
tin, and reduce the involvement
of third parties in the market-
ing of the metal.

It 3s quite clear, therefore,
that in future, if the Inter-
national Tin Council is slow in
responding to crises, tin pro-
ducers will turn to their
exclusive club.

Malaysia's grievances about

the tin market are, many, but it
was particularly angry with the
release of U.S. stockpile even
in a depressed tin market the
slowness in the ITC in agreeing
export controls, and the ruling
by the London. Metal Exchange
to limit penalties early this
year when sellers were caught
in a tight spot by a mysterious
tin buyer, believed to be acting
on behalf of Malaysian
producers.

Datxzk Leong said he expected
11 an intensification of produc-
tion cutbacks" an the coming
months since there was no other
way to bring supply-demand
equilibrium to the market.

The producers association
would be opened to other pro-
ducers, such as Bolivia,
Australia, and Nigeria, he said.

Richard Cowper writes from
Jakarta: Announcing Indonesia’s
decision to join the producer
pact here yesterday Dr
Sobroto, the country's Minister
for Mines and Energy, did not
appear, to favour an association
with teeth.

tin pact

- Control of production and
prices, said Dr .Subroto. would
best be carried out by the ITA

*‘We would like to see the
ITA functioning effectively
according to the draft agreement
in the fields of remunerative
price stabilisation, buffer stock-
ing and export .controls,” he
said. Dr Subroto denied that it
was Indonesia's intention to set
up a tin cartel.

Be hinted that Indonesia was
still lukewarm about the idea
of a tin producers' association
and implied that the decision
to agree to set one up at all was
in the nature of a compromise
with Malaysia.

Indonesia clearly sees, the

organisation functioning in a
very different way - from
Malaysia.

“I would like to see it as an
association to discuss production
and mining practices, ways and
means of making, the tin
industry more viable and search-
ing for better ways of utilising
tin— a nice forum for further
exchange of information,
experiences and so on,” he said.

Sixth ITA approval likely today

i

I

- I.

■? BY WUJ KH1NOAR1A IN GENEVA

*CIN . PRODUCERS and con- -
$uiners are likely to approve
.the sixth- International Tin
Agreement, which starts on July
1, at talks in Geneva today i-
its effectiveness may be
damaged by last Saturday’s
derision to create a separate tin
producers' association.

; Creation of the association is
Seen as reflecting the determina-
tion of Malaysia, which provides
^5 per cent of world exports, to
iinfluence tin prices through
aggressive policies including
tighter controls on supplies.

Malaysian acquiescence to
operating the international
agreement came under pressure
from Indonesia and Thailand,
the other key producers. It
reflects their common reluc-
tance to displease the European
Community and Japan, the main
’importers.

1 ' There is a risk that the talks
,‘might again end inconclusively
if the Community, which said it
.wants to operate the agreement
in spite of insufficient ratifica-
Jtiqris, introduces new conditions
,in the tight of the producers’
•dear lack of confidence in the

ON THE- London Metal Ex-
change tin prices fell back on
profit-taking following Mon-
day’s upsurge, caused by the
news that Malaysia bad
changed its mind about pull-
ing out of the tin agreement.
The cash quotation, which
rose £830 on Monday, ended
the day £150 down at £6445 a
tonne.

The other leading base
metals rallied meanwhile, led
by copper which registered
Its first substantial gain for
some weeks in rising £30.75 to
£721 a tonne for high grade
cash, in spite of the modest
rise in sterling: Cash lead
ended £12.50 up at £294.50 a
tonne while cash tine gained
£15 to £385.50 a tonne.

agreement. The producers'
association, if it works effec-
tively, may nullify (he benefits
the Community expects to get
from the agreement.

The main benefit the EEC
expects is the right to a sub-
stantial pay in producers'
policies designed to influence
tin prices and markets. It also
wants to prevent “manipula-
tion" of the market by pro-
ducers such as last February’s
bulk buying by unidentified
traders to posh up prices. The
Commnity suspects that the pur-
chases were made on behalf of
producers flouting traditional
practices.

The international agreement
looks unattractive to Malaysia
because it has been ratified by
countries representing only 50
per -cent of consumption com-
pared with more than 80 per
cent of production.

One result is that the original
buffer stock ‘ of 30,000 tonnes
financed equally by producers
and consumers may have to be
reduced to about 18,000 tonnes
because of the absence of the
TJ.S.

Malaysia is convinced that
such a small stock will fail to
stabilise prices, making export
controls essential. Since such
controls are applied only by

producers it sees no reason for
sharing the power to decide on
the size, riming and nature of
controls with consumer
countries.

The Community, which has
already suggested that the tin
agreement be reviewed after
only one year, may make its
ratification conditional on
“appropriate performance.” It
would assess after a year
whether producers have kept
their side of the bargain by
acting on markets only In co-
operation with consumers and
in conformity with consumer
interests as well as their own.

Japan is in a weaker bargain-
ing position than the Com-
munity, which takes about 27
per cent of tin imports, and also
has very different- interests.
Japan which buys 17 per cent
of tin imports, depends heavily
on the South-East Asian group
of countries for several raw
materials including rubber. It
is also trying to increase busi-
ness with them in many -fields.

Danes fight
EEC fishing
cuts plan

By Dudley Hunt In Copenhagen

DENMARK'S Fishery Minister
Karl Hjortnaes started a two-
day trip yesterday to gather sup-
port for his fight against EEC
fishing proposals.

His first stop was in Holland
where fae had talks with Mr A de
Honing, the Fishery Minister.
Today he has a meeting in Paris
with Mr Louis le Pensen, the
Maritime Minister.

Mr Hjortnaes’s main objective
is to change the proposed total
ban on Danish fishermen catch-
ing mackerel. This year Danes
are expected to catch about
22,000 tonnes and it is feared
the ban would destroy this part
of the fishing industry which
last year earned Kr 180m
(£12m) of the country's total
fish exports of Kr 6,700m.

The EEC proposals would
give Denmark about 24 per cent
of the total allowable fish catch
and this is considered unaccept-
able in Copenhagen.

The Danes want a common
fishery policy but say It is ridi-
culous to shut down part of
their industry which receives no
government support in order to
open subsidised processing
plants in other countries.

Officials say it is essential that
the deal is hammered out next
week before Denmark takes over
the c hairmanshi p of the EEC,
otherwise it may be necessary
to hold over talks for six
months.

Rain and floods
damage Cuban
tobacco crop

HAVANA— Cuba’s recently-
harvested tobacco crop suffered
“substantial but not critical
damage ” when hurricane
Alberto early this month and
torrential rains at the weekend
bit the istand’s rmior totwcco
growing reeion. Pirrar del Rio,
according to a Cuban official.

PreTiminpry estimates indi-
cate that About 950 tonnes of
tobacco leaf were lost and 1.300
tonnes d?maeed when the sheds
were hit by flood waters in {he
wake of the hurricane.

Reuter

PORTUGAL

Agriculture plan aims

to cut imports bill

THE PORTUGUESE Govern-
ment has devised a master plan
for the country’s chronteaDy-
backward agriculture industry.

The plan — called A change
for Agriculture — aims for
annual growth of agricultural
production of two or three per
cent and investments of Es 21 bn
to Es 29bn ($256m to 5353ml.
This would gradually reduce
Portugal’s dependence on im-
ported foodstuffs and animal
feeds from the present 74 per
cent of domestic demand to 25
per cent it is estimated.

At the end of 1981 it was
estimated by the Agriculture
Minister Sr Basilio Horn that
owing to last year’s drought,
general under-capitalisation and
lack of efficiency in farming, op-
to $1.5bn worth of food and
animal feeds would have to be
imported in the 1981-82 period.

The new plan calls for a
massive injection of capital and
technology, aimed at easing the
strain on the balance of pay-
ments caused by this level of
imports.

BY DIANA SMITH IN LISBON

Portugal has about 800,000
small-scale fanners, mostly in
the north, who concentrate on
tiny vineyards and some maize
or vegetables for family con-
sumption. 'What larger farming
there is — modest by West
European standards — is
generally in the centre
(orchards, rice and cattle) or in
the south in the Alentejo where
wheat, cork and olives are pro-
duced.

With approaching accession
to the European Economic Com-
munity Portugal’s shaky agricul-
ture has to be tackled with
technical and financial energies
that were lacking in the past.
Before it can be put into action,
the plan must be debated in
Parliament which could take
months — but it Is at least a
step towards an integrated
approach for wftat is arguably
Portugal's most depressed
sector.

EEC membership means more
expensive food imports, despite
the Community’s compensatory
systems. At present Portugal
buys the lion’s share of the

jrpp ^rted grain she needs from
the U.S. — about 5700m worth in
1982. of which half is covered
by concessionary terms from the
Commodities Credit Corpora-
tion.

This in itself is sufficient
reason for trying to boost domes-
tic output which has only grown
at 0.8 per cent a year lately.
New capital could help a situa-
tion where, according to agricu-
ture officials. Portugal depends
on imports for 90 per cent of
oilseeds. 74 per cent of grain
and all its sugar.

Meanwhile, the agricultural
balance of payments deficit
soared from Es 580m in 1970
to Es 51 bn in 1980, a good
agricultural year.

To make Portuguese agricul-
ture more efficient, the plan
calls for altered use of land —
for instance, switching areas
now used to produce low-grade
grain to pasturage. This would
step up domestic production of
animal feed, which is now
heavily imparted.

EEC calls for cereal agreement

BY LARRY KLINGER IN BRUSSELS

THE European Community
yesterday made an urgent plea
for the resumption of negotia-
tions on an international
cereals agreement to provide
food security for the develop-
ing world, especially the
poorest countries.

Mr Poul Dalsager, the
European Commissioner for
Agriculture, renewed the EEC
call before the World Food
Council’s ministerial meeting in
Acapulco. He said that con-
tinued inaction by the world's
grain exporters would only
increase the risks for the
world's hungry.

“ The European Community,”
he said, "considers that the
international community cannot

remain inactive before this
urgent problem.”

Mr Dalsager gave a qualified
welcome to council proposals
for creating a cereals reserve
purchased by low-income
countries and held, if possible,
on their territory.

The EEC was in favour of
the objectives of such a pro-
gramme and was ready to open
negotiations, but there were
several questions to he resolved.

Any storage system had to be
integrated with the importers'
own agriculture development so
that it did not disturb internal
markets or production policy.

In-depth studies, would be

necessary and agreements con-
cluded to protect world market
stability if, as suggested, stock-
building was to be financed by
using existing buffer-stock
facilities.

Mr Dalsager emphasised the
Community’s current aid pro-
gramme and recent decisions
taken on agriculture co-
operation with developing
countries.

The EEC was attempting to
mitigate world hunger problems
in the short term with excep-
tional food aid worth 840m,
which had increased direct Com-
munity aid by the equivalent of
130,000 tonnes of cereals.

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LONDON OIL
SPOT PRICES

~ Change

CRUDE OIL-FOB (8 par barrel)

Arabian Light S32.BO 1 — 0.20 .

Iranian Light _....3U»-31J*-0.50

.-Arabian Heavy...— ..bo zM0.ri- oio
. North Sea (Forties) J33.B0 34.1S+0.0B
1 Afrlcan(Bonny Li' ht>, 34^0^4.7^ — .

; PRODUCTS— North West Europe
• CIF (ffp«r tonne)

; Premium ga«oline_.[S4W90 [-4.0

Gaeoil ...B70-281 +14)

I Heavy fuel oil ^66-171 f -

GAS OIL FUTURES

The recovery in the European curren-
cies Jed to an upward move during
most of the day, reports Premier Men.

• a ujs.

■per tonne|
June...— .j 276.75

July.. ! 280.00

August 881.25

sept. ! aaajoo

Oat— ' .389.25

Nov. 288-25

Dec. 290.50

Jan- J 292.50

Feb ! 295.00

• - 1

+4.26074.00
+4JSaj2M.TO-7B.60
+ 5 JM (28 1.75-77 .00
+4.7»mjS-7B.0fl
+426* 85.5041.25
+5JW;M7JO-«LOD
+ 3.76^89.60-80 Jtt
+3jo;tsajo
+ 5-26] -

Turnover 2^»1 (2,298) lota ol 100
tonnes.

| GOLD

Gold rose $10* to $305J-3085
ria the London bullion market
I yesterday, reflecting the easing
• of the very strong dollar on the
] foreign exchanges. ' The metal
[opened at $299^300* and was
1 fixed at $301.75 in the morning,
{and $304 in the afternoon. It
l opened at the lowest level of
i the day and touched a peak of
1 $306i-307.

! In Paris the 121 kilo gold bar
'was fixed at FFr 66,000 per kilo
($300.34 per ounce) in the after-
fnoon, compared with FFr 66,000
; ($299.90) in' the morning, and
j FFr 65,000 ($293.17). Monday
; afternoon.

i In Frankfurt the 12} kilo gold

bar was fixed at DM 24,090 per
kilo ($3044)1 per ounce), against
DM 23,910 ($299.24) previously,
and closed at $3034-3044, com-
pared with $296,297.

In Zurich gold finished at $302-
$305.

LONDON FUTURES

Month •Yeat’rdey's
• Month j dose

+ OT

Buoinees

Done

]* per troy
ounce

August — 1 178.90-9.00
Sept* mb’ rj 180^0-0.65
October... 1B1.80-2.K
November 183 J15-3 Jtit
Deoem ban 186.90-5.46

+4.17B

^4.B25

t*L«H

+5.778

17839-8.18

182.10-78.1

ounces.

June 22

June 21

Gold Bullion (fine ounce)

■ *Chne !*305V306J«. (£176i*-I77) |S295lg^96le (£171>a-17B)

Morning fixing. -.*301.76 £173.719) gB7

"Afternoon fixIng.IWO* (2174.592J |S29g.75 (£172.2291

iKrugmd
hiSKrvg.
>14 Krug
■ ■ 1/10 Krug

■Mepietaaf
i New Sov

Gold Coins June 22

S315ls-3I7l« (£18214-18234) 'King SOV
SI 63 ic- 164is (£944-94*4) Victoria tov
$83-84 (£474484) [Frenoh 20«

834 36 (£19Ib-204I ,50 0808 MeX.

$5 154-3171® (£1824-1824) ilOOCor.Auat
$734-74 (£4244234) j$20 Eaglet

$824-554 (£474-48)
B824-BZ4 (£474481
$894-7194 (£40414)
$373-3804 (£2173-2191
S300+-303 (£173-1744)
$353-358 (£209-212)

Commodity

Analysis

Limited

COMMODITY
BROKERS

Specialists in
Commodity and Currency
Discretionary Accounts j

Minimum account size j
£25,000 - ,

Contact ’

Mark King dr Jeremy Metcalfe
Commodity Analysis limited
37/39 St Andrews Hill
London EC4 . ,
Tel: 01-236 5211

EDUCATIONAL

SCHULER

Int<Tiin(K»n:il t'nhersMv

MBA Aits, Languages;

Law, PubEc Adnnnatrettoa,
Economics, Psychology, esc.
Collett PrepamojyProgiwmiie
Inrercampus&uS transfer
Schafer I nl er maifapal I MmsH r
Dept. Dl, 51 Waterloo Road, -
London SE1. Telephone 01-928 8484

BRITISH COMMODITY MARKETS

BASE METALS

£2.990. 95. 3.000. Kerb: Three months
£2905, 90. 80. 76. Turnover. 948 tannes-

BASE METALS were aotnrely traded on
the London Moral Exchange, with
several strong ratlin after die recent
price weakness- Copper staged the
flwt reel recovery (or tome weak*,
dosing at £744.6. wbflt Load, vwa .
finally £301 S. 23 no £388.5 end Alu-
minium OHO: Tin lost tome ground to
close M £8.255. and Nfcfcal was a
MMa tower n £2.980. -

NICKEL

turn.

Official

Unofficial

kfj

Spot,

3 months

S 980-82
29904MM

■ \
j— !7J5|

2985-99

2995-3000

I. !

-BL6

-15

COPPER

IwfZ

HlghCr d>
ChIu.„

3 mt

Bettlamt

Cathodes

Cash n ..„4

3 months
Settlemt
U JL Prod,

un,

Official

1717
39
71 ELS

710-1

731-2

711

PJ*1-
jUnofflolal

^-O)+SSJ|720.5
.540)453 J]

+34

j+52J>

43Lfi

1 - 1 .

742,5-3

.sfrw.

711-13

73355

•62-74

+ or
-t

. ur

+31

+*W

+28J

Atnatgamotad Motel Tmdbig reported
That ■ In the morning capper Mgher
grade was cash untrsded: three months
£738. 39. 47. 40, 39. 39A 39. 3B.5,
39, 4a 39. 385. 39. 38.5. 39.0. 385. 39.'
395. Cathodes: Cash untradsd, throe
months £731. Kart: Hjgbter grade threo '
months £739, 38, 3751 37. 385. .
Cathodes untre'ded. Attorn non: (tighter .
grade cash urmadod: three rnotMia ■
£739, 40. 38.9. 744, 435. 43. 425.
43. -Cathodes: Cash umracled: three
month* £734. Kart; Higher grade Siren
monatw £744.00, 4350. 44,00, 48.00/
45.00, 45.00, 4450. 44.0a Cathodes:
Ungraded. Turnover. 37 . B50 tonnes.

• Cants par pound; 'IMS par kilo,
f On previous unofficial does.

SILVER

Stiver waa fl»d 2-7p wv ounce fegher
for spot deNvery'bi the London butilon
market .yesterday Ot 267. 8p. 115. cam
equivatenca of the firing levels ware:
spot 500.8c, up 10.7c; throe-month
5205c. up 105c: six-month 5395c, up
11.7c; end 12-month 580.6c, up 11.0c.
Hie metal opened at 285-288p (486-
500c) end dosed at 293-295p (510-
5WC)..

SILVER
P« r ■
troy oz.

Bullion

fixing

price

+ or

LtLE.

p-m.

Unofflcl

+or

Spot™. —
Z months.
6 months.
IBmontha

287. BOp
896JK)p
506.00P
525X1 Op

+8.7^

+2J3fi

+i80

299p

304.75p

1-13

+I2.5

TIN

aum.
Off) cle|

+or

p.m.

Unoffldlad

+or
— t

High Ore*

le *

*

*

Cull

6160-70

+215

6140-60

-TM

Z months
Settlem't

6250-60

+ im

6240-50-

-122.

6170

+2W

—

6160-70

+2U

6140-50

-160

625080

+ 210; 6240-50

-122.

Settlem't

6170

+211

. ^

Strait* E.
New York

1929.15

“1
— "1

—

LMB-'-Tu mover 130 (62) lots at
10,000 are. Momingl Three months
297. 96.6> BS.. 965.. 365. 975. 97.
Kortf Three months. 2975. Afternoon:
Three month* 3025, (0.5. ' 04, 035.
03, 065. 05. Kerb: 3045, 045. 05.0.
06.0.

COCOA

Futures remained steady In thin
volume as tobbare/.aiid commission
houses covered shorts.. Sumer ship-
ment aales by Brazilian shippers wars
sufficient to. limit the earlier modest
gains, reports Gill and Dufius.

Tin — Morning: Standa rd cosh £0170,
00: three months £6250, 30. SO. 00, 90.
■High grads: untradsd. Kerb; Standerd
three months £8250. High grade: Tun-
traded. Afternoon; Standard 'cash un-
waded: lata sept £8260: three months
£8230. 40. SO. <6, 40. 50. 40: ttigb-
gnrdo: All untredsd. Kerb: Standard
three monetre £6250. 00. 50. E5. High
grade untradsd. Turnover? 1,930 tonnes.

COCOA

Yaafday e
Close

+ or

Business

Dona

July..—~...

854-57

+4-0

859-46

Sept.

881-82

+ 3 X)

888-74

920-21

+2XJ

BE 7-15

959-60

+4X1

964-54

979-81

+4.0

984-78

July....

9984305

+4XS

—

Sept

1018-20

+ 1.5

1024 _

lots ol 10

HOTELS

OB THE COTE B’AZOR

Once you taste the refine*!
cooking of the.- “SAINT
PIERRE.” you will, undoubtedly,
.feci like saying in' one . of the
lovely rooms of the
“WELCOME*” which overlooks
the small harbour.

Hotel WELCOME
Restaurant SAIfjfT PlERW?

06230 — Vni£FRANCHB-SUR-MER .
FRANCE

- Tel: (83) 8557.27 '

' LEAD

' "ejn'-' -
Official

+ SI

k-Itu

Unofficial

+'or

-t

ram*

2 months
Sattiemt
U-S. Spot

- £
286.5-7
397^8 !
287 |

£

4-5.6

+6-5

£

294-5 .
305,5-6

•25-7

.*

+123

+12L2

L ead - Mornin g: O uab £288, 875, 87;
three months £3(71. 300; 9005, 300.
2995. 300. 2995, 99> 98. Kerb: Three
month® £297. 99. 985, 89. 300; After-
noon: Cash uotreded: three months
C301. 3005, 01. CO. 04, CS. 045. 05.
05. S, 05, 045, 06. 08. Kmb: Three
months E306.0Q. 0450, 0+03. 0350,
03.00. 02.001 0150, Turnover: 19,76
tonnes.

Sales: 1.778 (1540)
tonnes.

ICCO— Daily price for June 22: 7050
(69-36). Indicator pnea lor June 23:
69.98 (70-18).

COFFEE

Small opening losses ware gradually
erased as early trsda buying emerged
to suport values, reports Draxof Bum-
ham Lambert. Pars: stent commission;
house selling was the domlneu
feature of the afternoon.

calculations using 5 days’ exchange
rates ) is expected to remain unchanged.

RUBBER

The London physical market opened
slightly easier, attracted fair interest
throughout tha day. and dosed about
steady. Lewis and Peat recorded a
July fob price for No. 1 RSS in Kuala
Lumpur of 203.75 (203.5) cents a kg
and SMfl 20 1745 (same).

AMERICAN MARKETS

No. 1

Ycst'r'ys

Previous

Business

R.83. !

dose

dose

[ Done

I 1 1

July : 4650-4850 1 4850 47.601 —

Aug ...» 48504658 47584750! -

Jly-Sept 415046.40 • 47504750 48504758

Oat-Dec, 51.484150
Jan- Mar b4.30-64.60
Apf-Jne 67.18-6750
Jly-Sept 6950-6850
Oct-Dec 8258-82.70
J'n-Mch 8458-84.80

50,08-6050.6 1.70-6050
66,70-63.80 |B4 50 -5350
66.48-685 8 57.50-66. 80
83.B0-5350j68.86

62.00- 62.lQlEZ.7D

84.00- 6450,64.60

Sales: 264 (360) lota d 15 tonnes,
nil (2) lots of 5 tonnes.

Physical dosing pnees (buyers)
were: Spot 4655p (46.00p): July SO.TSp
(50.2Sp); Aug 5*.50p (51.00p).

SOYABEAN MEAL

Opening gains wars of around £1.00
an Short-Covering with the market
failing to penetrate recent lows, re-
ports T. G. Roddick. Prices remained
steady and with (ate commission
house buying dosed on- the highs.

|Y*sterdy*j+ or] Business
Close — Done

£

per tonne'

June..., — —

August 12950-295. + 0.40 1305048.70

October,,..- 16250-62.4 +155 11250-8150
Deo^....,.... 13856-68.7. +150 168.68-5650

Fob 133 .50-40 5+1. 75 —

April..: 1405041.0 +156' —

Saks: 23 (127) lots ol 1GO tonnes.
Sales: 240 (28) lots ol 100 tonnes.

SUGAR

LONDON DAILY* PRICE— Raw sugar.
£99.00 ' (£96.00) a tonne cif June-July-
. August shipment. White sugar dally
price £134.00 (£131.00).

Reports that India had recently
placed 140,000 tonnes into the second-
hand encouraged ' short-covering end
prices rallied, reports C. Czamtkow.

No.4 jYeirtsrday

Previous 1

[ Business

tract |

Aug--.'

Jan...._|

March

M«y-.J
Aug —
OoU..

ZINC

aum.

Ottlcie/

FVSUi

£

* .« .

£

376-JS

+7.51 385-6

+15

3 months

381 J6

+S.5589.B-9D,

+■18.1

S*ment ...

376J

+ 7 -®l - ' .

Prlmw'ta

— 1

1 *32-37.75

COFFEE

Yesterday’s
dose .

k-*

Business

Done

£ per tonne

July.

1226-28

1125-27

1050-51

1016-17

989-90

— 2.5
-8.0
-11*
— 17X)
-16^

1253-22.

1151-23

1058-49

1029-17

1001-90

990-79

Saul —

Nov^

January—
March

May — — -
July.

970-89

S3

£ per tonne

US.36-0S50I lD4.B0-Q4.7D:i09.7S-O47S
na5B-1355jl0855-aB50im.765850
120.98-2 150j 1 1450-1 BJffll —

t2858-26.se! 12650-26. 10 12855-2858
16156-31.30] 1285858 JB 16150-2758
135.26-S8.00l 150.004058- 151 5068.75
166 56-69. 50j 13350-64581 —

Zinc — Morning: ' Cash £376;' ' th'ree
months £382. 83. 82.5. 83. 84, 83.5.
82. 82.5. 62. 81. Kerb: Three monuis
£381, 82. 83, 82. Afternoon: Cash
un traded: three months £364, KS, 86,
87. 88. 89. 88. 88.5, 69. 8BS. SO, 89.75.
89.5. Kerb: Three months £389.00, 9950,
90.0, 89.00. 88.50. 89-50, 89.75. Turn-
over: 18,425 tannes.

Alumlnm

Bum.'
Offtolal .

p.m.

Unofficial

Spot

s months

* -

617.5-8.6

837j5-8

£

+2J5

+3

*

021-2

64 K5

*4 r

a

+ B

+8

Aluminium Moral ng: Clsh untradsd:

three months £538. 37. 39. 385, 39,.
38.5, 38, 375. Kerb: Three monrte
538, 38.5, 3ft 38, 385. Afternoon:
Cash untraded: throe monthe £538, 385.
39. 40. 39. 365. 39, 395. 40. 41.
Kerb: Three menflis S&41-.0O, 40.50.
40.00, «L0& 4050. .Turnover: 14,350-
tonnw- _ ■ •

Niehul— Morning: Cash £2980; three
months £3000. 2995, Kerb: Untradsd.
Afternoon: ,C**h untradsd; three months

Soled: 1569 (1.502) lots of 9 tonnes.

ICO - Indicator prices for June 21
(U.S. cents per pound): Comp, daily
1979 120.11 (120.54): 15-day average
12153 (121.70).

GRAINS

LONDON GRAINS — U.5. Derk
Northern Spring .No. 1 : U par cent
July 112.75. Aug 111.50. Sept 11055
transhipment East Coast seller, - English
Feed lob Sept 17150. Ocx -113.75, Nov
11550, Oet/DaC 115.75 : East Coast
sailers. Maize:. French July 137
transhipment East Coast quoted. South
African Whta/YeJIow Juho/July 95.00
sellar. Bailey: English Feed fob 108
Dover. Aug 106 East Coast. Oct/Dec
111.75 East Coast. 'Rett unquoted .

[Yeeterd'ysj +or

close

' Seise: 4.498 (2,182) lots of 60 tonnes.

Tate - and Lyle - delivery pncB for
granulated basis - white auger was
£374.00 (same) a tonne lob for home
wade and £204.00 (£20050) for export.

. International Sugar Agreement (U.S.
cents per pound) fob and stowed
Caribbean ports. Prices (or June 21:
Daily price 6.60 (6.51):- 15-day average
8.79 (858)..-

WOOL FUTURES

LONDON MEW ZEALAND CROSS-
BREDS— Close (in ordan buyer. seHer.
business). New Zealand cents per kg.
Aug. 365, 376. 369-387; Oct 288. 389,
387-388; Dec 392. 3 95. 395-384; Jan
396, 395. 398-395: March 408. 407. 407;.
May 417, 418. 418418; Aug 428. 431.
400: Oct 432. 433. 433-432; Dec 434,
438, 435.- Sales: 161.

SYDNEY GREASY WOOL — Close (in
order: buyer, seller, busbies). Austra-
loan cems per kg)- July 5485. 5490,
650.0-549.0: Oct 5175. 519.0, 521.0-
5185: Dec 523.0. 525.0. 526 .0-623 .0:
March 529.5, 531.0, 531.0; May 5350.
538.5, untraded: July -642.0. 543.0,
542.0; Oct 535.0, 539.0, untraded: Dec
5445. 548.0. untradsd. Sates: 110.

PRICE CHANGES

In tonnes unless otherwise stated.

June 22

+ or

Month

1982

1

ego

318(816

Metals __ i

Aluminium .. — 5810:818

Free Mid. 8090/920+10 j 8840/990

caffh r gnidi~)fi7ai +«^!«814

6 mthi *742.75 +31 £843.75

Cash Ca£ftode_W712 +28.5 *807

B mtha £734 +29.5£8365

Gold troy 0*^.18306,26 +1056 832855

Load Cash *294.5 +I5L5 £318.626

Smths. ',£305.75 +13^5 8323^5

Nickel 1*3922 uao74

Free mkt 230i260c +6

183974

®40rt»J

Platin’ rotr oz'y£260 — 1*260

F room let. £145^5 +4.2 Sl65.75

fiulcksllverf *370(680 I $365/576

Silver troy OX_ 287.80, >2.7 35S.B6p

3 mtha. 296.BDy +2.B 370.6Bp

Tin Cash 1*8146 (-150*6865

3 mtha 1*6245 + 1 22^*701 7 J5

Tungaten22.Qtb(611CJ72 ( I8109.01

Wolfrm22j(Wba;V 116/1 IS |

Zina Caslw.. JC385.5 +15

3 mtha 1*389.75 [+16J5|

Producer*. —11800

Olle

Coconut (PWI)

Groundnut

Unseed Crude,

Palm Malayan
Seeds

Copra Ph Up —

Soyabean (U.S-)

Grains

BarleyFuL Se

Maize

Wheat FtiLSep
NoJSKardWlntj

Other

oommoditleai
Coeoaihipt 1 - l£912
Future Sepe£881.5
Coffee Ff SeptlHiaS

$108112

£41*

S416JS5

$880/800

$502JSz
. *363

IwaOy

!$330

1239.5

'H®:

■104.561

Sl37J)0y

1*107.901

;*512.5

+ 2.5 i$522'5
!b335

+3

+ 0.1

$271
l£ 104.50

- 4*130.00

+0.1

£109.25
t

Cotton A-lndexj75.05c
GaaOU July.— 8280
Rubber (kite)- 46.25;;

Sugar (Raw) £99uw

WoolfpsCSa fcf. 398p kilo
In tonnes unless otherwise state.
i Unquoted.. x Aug-SepL u Jun e-July,
y July, w Aug. t Per 76 lb fleshk.

* Ghana coconut, n Nominal. S Seller.

50

— 24.5
tCHSB 5
+0.3 J7fl.70o
+4 1(299^5

+0J5|53.6p
+ 3 iCllO

597pfdfO

Monday’s closing prices

NEW YORK. June 22.
THE precious meals after early buying
attracted late selling on Israel's call
for a cease-fire. Copper was firm on
continued short covering Sugar
rallied sharply on technical buying and
short-covering on the lack of reaction
to news of Indian sales. Cocoa and
coffee recovered on light short cover-
ing rfom an oversold conditon. Cotton
continued to show gams on heavy
damage to the Texas crop, reported
Heinold.

ItCoooe— July 1320 (1388), Sept 1380
(1413). Dec 1454, March 1520, May
1565. July 1605, Sept 1850. Seles:
.4.000.

" Coflb*- , ’C" Contract: July 136.75-
137.10 (137.82). Sept 127.00-127.10
(128.19). Dec 121.90-122.00, March
n7.75-11B.00. May 115.00-115.25. July

112.00- 118.00. Sept 95.00-116.00. Sales:
1,435.

Copper — June 55.20 (54.55), July

ra.3D-55.65 (54.80). Aug 56.30. Sept

57.00- 57.40. Dae 59.60-59.90. Jan 80 25.
March 62.00. May 63.55. July 65.10.
Sept 68.65, Dec 69.00. Jan 89.75, March
71.35.

Cotton — No. — July 64.9DJJ5.0Q
(63.35). Oct 67.65-67.80 (65*5). Dec
88.78-68.90, March 70.70-71.00. May
7Z». July 73.40-73.50. Oct 74.00. Dec
73.50-74.00. Seles: 8,500.

Heating 01) — (cents par U.S. gallon):
July 90.0080.05 (91.06). Aug 88.30-
88.50 (89.70). Sept 88.40-88.75, Oct
8950-89.60. Nov 90.30-90.46. Dec 91 55-
SI .60. Jan 91.90. Fab 91.55-91.60. March
91.15. April 81.60, May 91.50-91.60.

Orange Juics— July 118.20-118.30
(113.60), SBpt. 120.30-120.70 (116.10).
Nov. 122.40. Jan. 124.50-125.00. March
126.25-126.50, May 127.75-128.00, July

128.90- 128*5. SepL 130.40-130.45, Nov.

131.90- 131*5. Sales: 1.400.
•Platinuro-^July 243.0-244* (249.4).

Oct. 251.5-253.5 (257.1), Jsn. 280.0,
April 269.2, July 278.2. Sales: 1.773.

Potatoes (round whites) — Nov 89.2-
69.4 (68.0), March 79.0 (78.4). April
87.2-87.3. Sales: 190.

Sugar— No. 11: July 7.28-7.31 f6.83).
Sept 7.64-7.66 (7.17). Oct 7.78-7*0,
Jen B.SO. March 9.02-9.06, May 8.26-
S.28. July 9.46-9.48, Sept 9.60-9.89,
Oct 9 75. Seles: 12.683.

Tin— 600.00-502.00 (490.00-510.00).

CHICAGO. June 72.
Chicago 1mm Gold — June 300.5
(303.6). SepL 308.7-306 J2 (311.9). Dec.

329.0- 319.8. March 330.7. June 342.2.
Sept. 354.0.

Lard— Chicano loose 23.00 (same).
Live Cattle — Aug 64.05-54.09 (64.70).
Oct 59.90-60.00 (60.75), Dec 60.55-
60.70. Feb 60.65-60.60, April 60.30,
June 61.97.

Live Hogs— July 59.20-53.05 (58.87),
Aug 58.10-55.40 (57.27). Oct 55.30-
55.32. Dec 54.85-54.60. Feb 52.70-52.55.
Aprir 49.55-49.60, June 50.70, July
50.65. Auo 51.25.

Maize — July 275V275»j (274). Sept
272-2714, (269V). May 298>*. July

305*1-

Por* Bellies— July 72.45-72.40

(70.85). Aug 70.32-70.20 (6B.45). Feb
71.85-71 .3a March 71.50. May 71.27.
Julv 71.80-71.65. Aug 71.00.

t Soyabeans — July 837-638 (B31M.

Aug 838*3-638 (634). Sept 639**, Nov
645-644, Jan 660*2, March 676*3. May
689*3. Aug 704.

HSoyebeen Meal — July 184.0-184.3
(184.2). A IK) 184.4-184*2 (184.4), Sept
185.2. Oct 185.5. Dec 190.0-190.1, Jan

192.5. March 196.0-197.0, May 2D1.0,
July 205.3-205.4.

Soyabean Oil— July 19.32-19.35
(18.94), A lip 19.60-79.58 (79.18). Sept
19.77. Oct 19.95-19 97. Dec 20.35-20.37,
Jan 20.60. March 20.85, May 21.00-
21.10, July 21.20-21.30.

tWhoet — July 342-341 (3381.). Sept

357-356*7 (353*1). Dec 3 78-378**, March
392*4-392. May 397V396V. July 393.

WINNIPEG. June 22.
(Barley— July 124.5 (123.8), Oct

123.0 (123.0). Dec 124.5. M*rch 127.6.
HSilver— June 504.0 (498.0), July

503.0- 508.0 (483.01. Aug 512.0, Sept

517.0- 519.0, Dec 537.0-540.0, Jan 546.5.
March rao.5. May 574.5, July 588.5,
Sept 602.5. Dec 620.0. Jan 530.5. March

644.5. Handy and Hannan buttkrrt spot:
5"«*;o (438.501.

•Gold— Jun a 299.0 (301.0). July 298.2
(Tti.5), Aug 301.0-302.0. Oct 308.0-
3D9.2. Dec 315. S -31 7 0. Feb 32S.O, April
331. B. June 339.7. Aug 347.7, Oct 355.8.
Den 364.0. Feb 372.3. April 380.7.

§ Wheat — SCWRS 13.5 per cent pro-
tein content cif St Lawrence 228.54
(seme).

All cants par pound ex-warehouse
unless otharwiac stated. *S per troy
ounce. 9 Cents per troy ounce.
It Cams per 56-lb bushel, t Cents
per 60-lb bushel f| S per short ton
f2.000 lb). 5 SCan. per metric ton.
§§ S per 1.000 sq ft. t Cents per
dozen, ft S per metric ton.

EUROPEAN MARKETS

— INDICES

FINANCIAL TIMES

June 21

Uuna IS

M^th ago Y’ar ago

224^8!

222.741

239.80 J 246.37

(Bisk July 1. 1352 — 100)

REUTERS

June XSUune Zi[M*th «go]Y’ar ago

gpune ZljMth ago]
L6| 1490.6 1557,5 I

1803.6 11490.6 | 1557,5 | 1737J3
(Biao: S ep t emb er 18. 1931 - 100)

Mooors

June 22

June1B|

M'th ago

Y'arago

966,6

964.9

1001 1

1088.6

(December 31. 1831 - 100)
DOW JONES

DOW |
Jones]

.June June [Month
22 IB 1 ago

Year

ago

Spot |
Tutr’e

}19.212 , 119.19jl25.11

118.041117.14il26.83

374.26

076J2

(Base December 31. 1974 - 100)

ROTTERDAM, June 22
Wheel — (U.S. S pet tonne): U.S.
No. 2 Dark Hard Winter 13.5 per cent
July 174, Aug 174; U.S. No. 3 Amber
Durum June 174. July 175, Aug 178.
Sept 180; U.S. No. 2 Northern Spring
14 per cent June 178, July 176, Aug
174, Sept 174. Oct 176; Canadian
Western Red Spring July-S&pt 195.

■ Maize — (U.S. S per tonne): U.S.
No. 3 YeHow afloat 125, June 124.50,
July 126, Aug 126. Sept 125, Oct-Dec
124. JarvMarch 132 a oU&rs.

Soyabeans — (U.S. S per tomra): U.S.
No. 2 YeHow Gulf ports July 253.50.
Aug 255. Sept 256-50. Oct 252.50. Nov
252.50. Dec 257.50, Jan 263, Fob 257,
March 270 aeHers.

Soyameal — (U.S. $ per tonnB): 44 per
cent afloat 213 traded, afloat 214. June
215, July 220, Aug 222. Sapt 224, Oct
226. Nov-Meroh 334 sellers: Brazil afloat
213 traded: Pellets Brazil afloat 218,
June 226, July 229, Aug 231. June-Sept
231. New -March 251 sell at a.

Sugar— (FFr per tonne): Aug 1581/
1582. Oct 1532/1537. Nov 1530/1540.
Dec 1515/1525. March 1610/1615. May
1645/1 GEO. July 1B80/16S0. Aug 1700/
1710. Seles at call: 30.

PARIS. June 22
Cocoa — (FFr per 100 kilos)- July
1011/1024, Sept 1055/1058. Dec' 1091/
1100. March 1135/1145, Mav 1178/1185.
July 1220/1228. Sept 1250/1257. Sales
a« call: S.

July J
Sept!
NOV_]

Jan
Mar J

.M^g

[Yest'rd'ysf +cr
dome

COTTON

-11435

107 j»
111.60
1-15.40
118.75
122 JO

+0.1B

+ 0.10

+ 0.10

+0.05

•hOilll

104,56
108J!0
111.85
116.00
118J.5. :l

+0.10

+0.15

+0.16.

+0*5

LIVERPOOL— Sppt end Bhlpntent metes
amounted to 321 tonnes. Renewed
interest . was . shown in numerous
varieties, and after the dismal trading
H> recent weeks more attention waa
centred cm regular aa wen a« specialist
styles. African and . Middle Eastern
qualities were In .chief requost.

‘ HGCA — Locations 1 ex-tom spot prices.
Feed barley: S. East 103.90. The UK
Mdtotn^ Coefflolent for 4>e week' begin*
Iring Monday, June 28 Started on NOCA

POTATOES

* LONDON POFTATO' FUTURES— Profit-
taking altar, recent, falls raised all

positions, reports Coley and Harper.
Dosing prices: Nov 59,80. +1*0 (high
59.80. low 58.00): Feb 65.50. +0.50.
(high 65.50. tow 64.70): April 7330.
+130 (high 73*a tow 71.10): May
82 30. +1JD (high 82^0, tow 80 . 00 );
Nov 05,50, —030 (unuaded). Tum-
oven 365 (447) lota of 40 tonnes.

meat /Pish

SMITHFlELP— Fe n ce per pound. Beef:
Scotch kKted sides 78,2 to 84.0; Eire
hlndquansrs 97 2 to 100.0, forequarters
63-0 n 55.0. -Vesl: Dutch hinds and
ends 116.0 to 121 JL Lamb: English
small 68.7 to 76.7. medium 70.0 to
75D. heavy 64.0 to 68D; Imported:
Now defend PL 61.3 to 62.7. PM 61.0
to 61 A ' PX 994) to 60 JJ. YL 60-0 to
61 St. Pork: Eng/is/r, under 100 lb
34.0 to 63£, 100-120 lb 414) to S2£,
320-160 lb 414) to 49.7.

GRIMSBY FISH — Supply - good.

demand good. Prices at ship's side
(unprocessed) par stone).- Shell cad
C4.50-C5.60. codlings E2.80-C3.70: shell
haddock £3.60-64.40. large f3.GO-E4.20.
small £1.80- £3. 80; large plaice £5^0.
medium 4.80-C5.20. beat small £3.90-
£4.80; skinned dogRsh (laige) £8.00.
medium £7.00: lemon soles (large)
03.50. medium £7.50: rock Rah £1.20-
£3.00; reds C1.SO-C2.00; saiihe £1.80-
£2.70.

covarr GARDEN — Prices for the
bulk of produce, in sterling par pack-
age except where athenwiae stated.
Imported Produce: Oranges-rJafla: 20
kg Valencia Laws 56 6.25, 60 6.26, 75

6.25. 88 S.85, 105 5.8a 123 4^5. 144
4.60, 168 450; Moroccan: 16 ka
Valencia La tea 48/113 350 6.00; Om-
span: Navels 40 550, 48 5.70, 56 6.35.
78 855. 88 5.60. 112 520. 138 4.30,
15D 350. Lemons — Spania: trays 5 kg
40/50 1.60 2.00; Outspan: 15*a kg 80/180
5.00 7.50. Grapefruit — U.S.: 15/17 ko.
Horlde Ruby 9.50 10.00; Jails: 2D ko
27 OS, 32 4.45, 36 4.65, 40 4.90, 1

5.25. 56 5 JO, 64 5-15. 75 4.95, 88 4.00; '
Californian: Pink 7.00 7.50; S. African:
27 4.60 32 5.25. 36 S3S. 40 6J5, 48
6.4a 56 5.35. 64 4.65. 72 4.35-Auby
same as Whits. Apples — French:
Golden Delicious 18 kg &. 00-9.00:
Tasmanian: Goidoeh Delicious 11.00-
12.00, Jonathan 11.00, Granny Smith
9£0-10.00, Snirmer Pippins ia50-ll.QO:
Australian: King Cole 12.0O-l2.5o,'

Granny Smith 9.50-10.50; New Zealand:
11.00-11.50: S. African; Granny Smith

9.50- 10.50. Golden Delicious 1050-13.50.
Starkcrimaon 9.00-10.00: U.S.: 18 kg
Rad Delicious 9.00-13.00. Pears —
Australian: Winter Nalis 13.50-14.50:
Tasmanian: Packham’s Triumph 14.50-
15.00: S. Alrican: 15 kg Packham’s
Triumph 13.50-15.00. Winter Nelis 11.50-
12.50, Joeaphinas 13 50-14.50: Aus-
irallan/Tasmanian: Josephines 15.00-
15.00. Peaches — Spanish: 1.50-3,50.
Italian: Standard trays T*0-3.00. large
traya 2.50-4.00; French: A/AAA 3*0-
4.50; U.S.: Each 0.15-0.20. Phime—
Italian; Florencia per lb D.40; Spanish:
11 lb Red Beauty per lb 0.30-0.50.
Japanese 11 lb. per lb 0.30-0.50: U.S.:
28 lb, par lb 0.70. Grapee— Israeli:
Periette .7.20: Chilean: 5 kg Almeria
8 JO. Red Emperor 6.25-6.50: S. African:
Barlinhe 8-00, Almeria 8.00; Cyprus;
Carllnal 8.00. Raspberries— U.S. : 1^0.
Strawberries: U.S.. per tray 12.00.
Gooseberries: Hungarian: 6 kg 3.00.
Chenles — Turkish: par lb 0.20-0.50;
Italian: 0.30-0.65. Apricots — Spanish
6 kg 2.00-3.00. Nectarines: Italian; 4.00-
7.00 Melons— Spanish: Gulie 3.00-4.50,
Yellow 10 kg d.oO-5.00: Israeli: Yellow

4.50- 5.50: . French; Charanrals 11/15
10.08-15-00- Water-Melons — Spanish:
16 kg 3.50-4.50: Israeli; 4.20-4.40. Pine-
apples — S. Alrican; S/S 5.00-6,00; Ivory
Coast: 20' s 0.45. 12‘s 0.75; Kenyan 6*s
each 1.60-1.70.

and markets

IV ]

CT- V

I I

NEW YORK

Stack

!Jun«

I .21

] June
I * a

ACF Industries... I 30 t B

AMF I lgi?

AM I Itn ' -

ARA. 2563

ASA 251,

AVX Corp„ | 157a

Abbot Labs*, 1 277?

Acme Clave I 17T B

Adobe Oil & Gas | is

Advanced Micro. 1 22*9
Aetna LJTa & Gaol 33ig
Ahmanson i K.F.)| Sl«
Air Prod 4 Ctiem 263,

Akzona - 154

Albany Int Wk

Aiborto-Culv. Ills

Albertson's.. 304

AlcanAlumlnlum 165a
Ahjo Standard.... 304
Alexander ft Al... 243,

Aiegbeny Int 237a

Allied Corn.. 31

Allied Stores 29

Allis-Ghaimera.... 124
Alpha Porto 123a

301,

144

! 2568
! 26
1 154

m

177a
16
22*8
33 ’b
. 84
t 264

15

24
114
30

16
204
244

25 Ta
314
29
124

125g

Alcoa 1

Amal. Sugar...

Amax

Amdahl Corp.
Amerada Hess....

Am. Airlines >

Am. Grands

Am. Broad cart'gi

Am. Can ;

Am. Cyanamid....'
Am. Elect. Powr.

Am. Express

Am. Gen. Insnee.
Am. Holst ft Dk...j
Am. Home Prod J
Am. Hosp. Suppy!
Am. Medical Inti |

Am. Motors >

Am. Nat. Reeces.

Am. Petflna..

Am. Quasar Pat..;

234 I 24
434 < 43
184 184

18 | 174

185fl : 184

174 I 174
394 I 404
347 8 I 344
271a I 274
25 I 24T 8
164 165s

4QTj J 405s
394 I 387 8
114 ! 114
564 ■ 364
424 i 424
214 • 204
34 j 34

294 ' 295a

66 ; 664

84 ; 85g

Am. Standard-..

Am. Stores

Am. Tel. &Tel. —

Amoteklnc

Amfac

AMP

Amatar

Am st Bad Inda....
Anchor Hockg...
Anhcuaer-Bh...-
Archer Daniels..
Armco -

Armstrong OK....

AsameraOil...

Asarco

Ashland Oil

Assd. 0. Goods...
Atlantic Rich ....
Auto* Data Prg...

Avco

Avery lntl

Avnet -

Avon Prod

Baker Inti

Balt Gas ft El

Ban Cal

Bangor Punta -
Bank America ...

Bank of N.Y

Bankers Tst N.Y.

Barry Wright

Bausch ft Lomb.
Baxt Trav Lab....
Beatrice Foods...

Beker Inds

Bell ft Howell ...
Bell Industries —

Bend lx _

Beneficial

.1 234
J 40
J 504
., 26 4
. 187 B
53

aoss
. 22
.i 145s
.1 504
.’ 14

i 17

.1 15J?
.• 6T B
.' 204
.! 255b
. 524
.i 37 i B
.1 244
. IS
.1 244

425,

227a

23

254

20

134

157 S

371,

27

144

403s

333,

18

54

194

145s

45

175,

Beth Steel I

Big Thee lnds~.H
Black ft Decker..

Block HR _....

B ue Bell.- !

Boeing.

Boise Cascade — !

Borden ;

Borg Warner

Briggs Strata

Bristol-Myers

EP_

Brockway Glass.

Brown Forman B|

Brown Grp

Brown ft Sharp..
Browng Farris..-
Brunswick,.—...

163&

1658

134

304

234

154

204

324

2378

243,

564

207a

134

334

314

144

284

204

Bueyrus-Erie

Burlington Ind ...

Burlington Nrthn'

Burndy

Burroughs...

OBI Inds

CBS ........

CPC Inti

CSX

Campbell Red 1_.

Campbell Soup—
Campbell Tagg ..
Canal Randolph.!

Can. Pacific

Carlisle Corp — —

Carnation

Carp Tech ... |

Carter Hawley ...

Caterpillar

Celanese Corp...

Cental.- -

Centex -

Central ft Sw

Central Soya.

Certain -teed

Cessna Aircraft.
Champ Home Bid
Champ Int _...j

Champ Sp Plug-

Charter Co

Chase Manhatt'n

Chemical NY

Chesels Pond I

Chicago Pneum.J

Chrysler....-

Chubb

124

204

404

163,
514
344
533,
344s
374
73*
34*
, 244
35
193,
214
307?
314

tafia

354

433,

304

183b

154

104

107a

15t b

3

124
7sa
84
404
314
52 4
1278
63 b
37

Cigna 32

Cincinnati Mil ._.[ 193?
Citicorp.,.......—.,' 244

Cities Service..-! 533s

City invest j 21

Clark Equipment. 194
Clave Cliffs Iron.'

Clorox - ;

Clueltt Peaby

Coca Cola

Colgate Palm I

Collins Alkman.-

183,

134

164

333,

1658

123,

Colt Inds 1 235a

( 223,

40

503,

254

I 18
' 62*3

i 21
314
135?
504
14
164

154

63,

204

254

317b

384

244

147 S

244

424

223,

2258

254

2D

134

157b

374

274

144

404

357a

184

64

194

157 B

454

173,

I64

164

134

304

221 B

1558

197 S

324

234

244

664

21

13

32

32

144

Z73g

204

124

20

414

17
314
337?
333*
344
373,

84

344

244

35

194

214

314

313,

125 B
343,
434
30
177 fl
194
10S B
I07 a
154
25,
12
7*,
84
41 T a
32
324
13
64
374

32

194

25 4

534

205?

194

18
134
I64
334
174
127s
*34

Stock

June

21

Columbia Gas.- 39 4
Columbia Piet... «.
Combined Inf... IB*#
Combustn. Eng.. 24
Cmwith. Edison. 204
Comm. Sate Mte-J 314

June

18

394*

714

19

234

204

51

Comp. Science...

Cone Mills ;

Oonrac

Cons Edison —

Cons. Foods

Cons Freight

Con. Nat Gas......

Conmuer Power]
Cant Air Lines....

Conti. Corp...--.]
Conti. Group.—.
Conti. II Ion is...—
Conti. Telep—
Control Data..—

Cooper Inds

Coors Adolph—

Copperweld.

Corning Glass
Corroen Black,...
Cox Broa --cast's
Crane..................

Crocker Nat— .[

Crown Cork .'

Crown Zell— ...
Cummins Eng ...J

Curtiss-Wright

Damon

Dana — .......

Dart ft Kraft

Data Gen,—........

Dayton-Hudson ..

Deere

Delta Air

Denny's-

114 i 314

28?8

84 s ,
344'
534
334
234
17

37a

234

264

85 4
IfiSfl
2336

Danteply lntl 1

Detroit Edison....;

Diamond lntl I

Diamond Shank..'

DiGlorglo _.i

Digital Equip

Dillingham

Dillon

Disney (Waltl— .j
Dome Mines...—.

Donnelly (RRJ .

Dover Corp

Dow Chemioal...

Dow Jones

Dresser

Dr. Pepper |

Duke Power 1

Dun ft Brad ■

Du Pont — I

EG ft p I

Ease I

Eastern Airlines.!
Eastern Gas ft F.|
Eastman Kodak.. [

Eaton I

EchIJn Mfg

Eckherd Jack—
Electranlo Data.
Elect Memories.

El Paso

Emerson Elects
Emery Air Fgt—

Emit art

Engelhard Cor p-

Enserch .-...I

Esin ark —

Ethyl ....

Evans Prod 1

Ex CellO

Exxon.— !

FMC_ - _|

Faberge—

Fodders

Federal Co

Federal-Mogul,...
Fed. Nat Ktort...]
Fed. Paper Brd...:
Fed. Resources-
Fed. Dep. Stores!
Field crest Ml—

Firestone—

1st Bank System
1st Charter Fin-!

267e

1QT B

134

447 b

204

254

227g

264

23

1758

27

384

64

25

52

874

574

264

325a

2458

344

114

384

18

9

674

104

224

54

54

40

215?

208?

384

175b

11k

2058

686 ?

31 s ,

lBSe

19

54

1758

694

27

117 S

184

25i,

37?

184

424

8

321,

184

184

444

195?

74

21Sfl

274

244

164

34

22

21

95a

1958

04

41Tb

201 ;

117 8

284

gss

1st Chicago I 156 b

1st City Bank Tex 244
1st Interstate..— 244
1st Mississippi.... 77a
1st Nat Boston... 227?

1st Psnn — 3

Fisone.— 57a

Fleetwood Ent..: 16

Flexl-van 164

Florida Pwrft I— 314

Ford Motor -.; 824

Foremost Mck.... 294
Foster Wheeler- . 10*?
Freeport MoM.„. 134

Fruehauf- 194

GAF 104

GATX 327a

Gan net

Gelco

Gen Am Invest.-.

Gen Cinema

Gen Dynamics ..

Gen Electric

Gen Foods

Gen Instrumental

Gen Mills

Gen Motors ...
Gen Pub Utllltl

Gen Signal

Gen Telep Elec.-

Gen Tire ,

Genesoo —

314

164

144

594

284

604

56

334

42

454

44

334

265a

195a

37 B

Genuine Parts...

Georgia Pac

Geosource

Garbes Prod

Getty Oil

Glddens Lewis...

Gillette

Global Marine

Goodrich (BF/....
Goodyear Tire...

Gould —

Grace

Grainger iW.W)„

-| 334

■I J 31 *

.! 404

.; 284
484
.! 13
■! 35

- 107?
. 187?

- 334

- S 3 *

. 3438
. 1 344

304

24I&

344’

355,

344

S3U

16~g

37a

254

£55?

254

157?

233b

1 284

107 B

154

444

1978

2478

223?

26

23

174

264

384

64

264

514

2650

364

264

32

244

2458

114

38

184

9

674

104

214

534

6

394

21

203s

404

174.

134

204

674

313?

less

19

54

174
685s
27 •
134
18
254
37 b

184

424

84

317,

194

18
444
19
74
214
274
243,
174
34
224
204
94
194
04
42
206b
11 7b
284
95s

164-

244

£4

8

234

S"

16

164

31

22T B

2938

304

134

194

104

23

314

164

144

394

284

604

364

333a

42

454

4*8

334

27

194

34

325s
134
404
! 984
i 477 B

134
334
10*8
19
25 4
254
344
344

Stock

June

21

June

18

GLAtl.Pac.Tea.

6

e

OL Basins Pct^_

2

a

Gt Nthn.NekooM

3070

an?

GLWestFinancl.

10*0

1070

Greyhound— —

1278

Grumman .. — ....

30

29T b

Gu 1 ft Weston —

1230

12ia

Gulf Oil g? s 4

HBII (FB) 834

Halliburton 274

Hammermlll Ppri 234

Handleman 124

Hanna Mining —I 234
Harcourt Brace..- ISSg
Harris Bancp — j 234

Harris Corp - I 814

Haraco j 164

Hecia Mining — 63 b

Heinz (HJL_ 324

Heller lntl—. 1 164

Hercules — — ; 177a

Hershey— . — |

Heublein

Hewlett Pkd-

Hilton Hotels — |
Hitachi-

404

364

414

313b

864

Holiday inns.

Holly Sugar

Homostake......

Honeywell........

Hoover

Hoover Uni

Harmel Geo.V—
Hospital Corp—
Household IntL.
Houston inds....
Hudson Boy Mng
Hughes Tool—.
Humana ......

! 863,
I 514
I 174

i 66 Sb
| 10
! 164
194
884
185?
I 184

I05fl

194

2378

Husky Oil

Hutton (EF)

1C Inds.-

IU Int

Ideal Basic Ind

Ideal Toy

ICI ADR

Imp Corp Amer

INCO

Inge reel Rand.
Inland Steel ....

Intel :.....

Inter First Corp

Interlake

Inter North

IBM..

I *-

I 233e
I 284

J 107 B
164

I 18
54
6

84
404
19 4
S84
214
25
264
■i 684

I 274
24
274
236?
124
2358
13

234
20 s ,
164
6'a
334
163 b
. 174
! 403b
354
40
294
264

874

634

177a

65

10

164

194

884

185?

184

107s

184

234

I 44
22
284

I 101|

I 174
I 12
54
64
84

I 394

i 194
I 29
| 224
I 234
1 253,
684

lntl. Flavours —
lntl. Harvester....!
Intt.lnaoma Prop;

lntl. Paper. —|

Int. Roctifler— .....
IntJ. Tel ft Tel—

Irving Bank-:

James (FS).

JeFfn-Pitot

Jewel Coe-

Jim Walter

Johnson- Contr... 1
Johnson &Jna—.]
Johnthon Logan.'

Joy Mnf-

K. Mart-./.

Kaiser Alum— —1
Kaiser Steel I

Kaneb Sanriaes-I
Kaufman Brd—

Kay Corp

Kellogg -

Kennametal I

Kerr -McGee-

KJdde.

Kimberly-Clark J
King’s Dept SL...
Knight Rdr. Nvra]

Koppers—

Kroehler..

Kroger. —

LTV

Lanier Bus. Prod
Leas-Slegler —.-...I
Leareway Trans.

La no*

Levi Strauss..

Levttz Furntr

Ubby Owens Fd.|

Uly (Ell)

Lincoln Not—

Litton Inds. I

Lockheed

Loews- -

Lone Star Inds,...
Longs Drug StraJ
Louisiana Land...
Louisiana Pao-_
Lowensteln ........

Lubrizoi -

Lucky Strs— -

M/A Com. Ino

MCA-

MacMillan. ,

204

34

9

354

95fl

224

363,

196?

234

814

17

194

373,

134

as 4
174

124 j

194

204

33,

9

34Ts

95s

224

364

195?

24

314

164

19*8

374

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22

184

124

195b

134

73a

87 a

234

8458

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204

604

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2638

14

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324

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214

274

384

22

21

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384

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603,

855?

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284

254

IS

274

174

13

20

694

124

I 134
7Jg
8f 9
234
1 244
j 244
! 20
! 604
I 15?
• 29
| 1378
75?
314
i 104
i 164
22
274

38Ss

215?

204

224

865?

384

394

604

855,

194

285s

254

164

274

167b

127b

204

575b

12*e

Man [

Mfcrs Hanover....!
Manville Corp. ...

Mapco I

Marine Mid •

Marriott i

Marsh McLann...-
Marehall Field...;

Martin Mtta j

Maryland Cup..-;

Masco. ...........

Massey Fergn. ...1
Mass Multi. Corp.

Mattel 1

May Dept. Strs...

Maytag - — I

McCulloch

McDermott UR]..!

McDonalds ’

McDonnell Doug
McGraw Edison,.:
McGraw-Hill
McLean Tru kg ...;

Mead - — 1

Media Ganl-

Medtronic

Mellon Natl

Melville ;

Mercantile 5ts.... :

Merck

Meredith- ’

Merrill Lynch -.,

364 I 37
275b I 27? b
84 j 87a
27 ! 27

16Tg 17
33G| 34

334 j 33

244 I 244

354 ; 354

304

2

175g

164

265?

274

94

18

69

344

27

50

135?

164

335?

454

304

474

647?

684

584

3438

31

17?

174

144

264

274
9
18
697b
I 34

1 874
| 60
• 137b
; i64
541 b
1 45*8
j 294
1 464
i 64 s ,
1 684
! 984
. 244

Stock

MGM -

•Metromedia..—,
Milton Bradsy
Minnesota MM_
Missouri Pae—

Mobill

Modem Mbrchg

Mohaaco. — .

Monarch M/T-...
Monsanto-..—...
Moore McCmrk-

M organ (Jp)..

Mot orolo _
Munslngwaar. J

Murphy IGC).

Murhy Oil

Nabisoo Brandi-
Nalco Chem— ....

June I June
21 18

6*s

2144

18>a

914

644

284

104

104

147a

577 S

164
48*e
99 Tb
134

1270

2058

337 B

214

Nat can.

Nat. Detroit

Nat DlsLChem.

Nat Gypsum

Nat MedlealEnti
HatSemlcduotr
Nat. Service Ind,
Nat Standard.-.
Nat Steel

Notomaa

NCNB

NCR.

New England El.
NY StateEftG...
NY Times

NewmontMInlna
Nleg. Mohawk—

NICOR Ino-

Nielsen <AQ A, -.
NL Industries.—.
NLT

Norfol kSoutheml

Nth. Am. Coal

Nth. AmjPhlllpa,
Nthn. State PwrJ
Northgata Exp.-

Northrop

N West Airlines-
NWaet Bancorp—
Nwest Irds..
Nwestn Mutual...
Nwest Steel W....

Norton

Norton Simon —
Occidental Pet—
Ocean Drill Exp.J

Ogden 1

Ogilvy ftMrth. |

Ohio Edison- 1

Olln - I

Omark -

Oneck.. 1

16

204

194

18

154

204

84

84

15

164

124

61
271|
164
384
274
134
28*8
464
193?
27 Tg

414

24

37

274

S

814

244

19

66 Sb

9

164

297?

174

187?

177b

215,

324

124

194

14

264

Outboard Marina' 224
Overseas Ship.... 1 134
Owens- Corning - 16*«
Owens-Illinois .... 22*e

PHH Group lBSfl

PPG Inds - 305s

Rabat Brewing... 197 b
P ao. Gas ft Elect. 234
Pac. Lighting -... 85&a
Pac. Lumber — | 164

Palm Beach— —

Pan. Am. Air.

Pan. Hand Pipe-
Parker Drilling ...
Parker Hanfn — 1

Peabody lntl

Penn Central

Penney (JC)

Pennzoll

Peoples Energy-1

Papslco- — -1

Perkin Elmer

Petrie Stores

Petrol one- 1

Pfizer

Phelps Dodge —

Phila Elect

Phllbro Sal'n Inc.
Philip Morris—

Phillips Pet

Pi II bury — i

Pioneer Corp

Pitney- Bowes -. J

Plttaton- |

Planning Raa'oh

Piessey

Polaroid.—. -

Potlatch -

Prentice Hall

Proctor Gamble^

Pub. Serv. E &G.
Pub. 2. Indiana—

Pure*- —

Puro later

Quaker Oats

Quanax -

Questor.. -

RCA

Raison Purina....

Ramada Inna

Rank Org- ADR...
Raytheon — .

165?

3*?

26

114

157?

6 50
26
377#
327g

74

385?
184
224
143?
54 1 g
21*8
137?
214
484
294
427 B
1B4
29
147 B
65?

784

167 B

21

244

834

197?

224

284

344

385,

85?

184

164

13*8

45*

34

334

Reading Bates ...! 134

Redman Inds

Reeve* Bros

Reiohhold Chem

124

69

114

64

214

183s

6078

654

22*,

104

104

194

5S*s

164

494

584

134

12*6

204

334

207 #

164

20*,

194

18

133,

20

844

94

147 8

164

12 Tg

904

27
164
38 s ,
284
134
284
464
194

28

I 4050
24 s ,
364
273,
270
51*8
246?
IB*,
564
94
164
294
174
183,
174
22 4
324
124
19
14
264

22*e

134

166?

22

19

30*,

204

235?

257b

164

less

254

11*«

197s

6*8

254

374

345b

77 b

385e

185b

224

14

6350

2158

137 B

214

49

294

43

185s

294

144

64

784

17k

21

26

83*0

194

22*a

284

345#

3870

84

134

1970

15*8

44

24

335a

134

12*0

687 8

114

Republic Steel-
Rep of Texas—
Reach Cottrell—

Resort lntl A

Reveo (DS)...._.-.
Revere Copper.

Revlon

Rexnord

Reynolds HU)— .
Reynolds Mtls....

Rite Aid-

Roadway Exps...

Robbins <AHi

Rochester Gas—
Rockwell lntl— ..
Rohm ft Haas— 1
Rollins

Roim

Roper Corp

Rowan —

Royal Crown

Royal Dutch—

Rubbermaid

Ryan Homes

Ryder System ....
SFN Companies..
SP8Technol,Bles|

Sabine Corp

Safeco —

Safeway StoraaJ

St. PaufCos.

SL Regis Paper J

Sante Fa Inds. ...

Saul Invest. _!

Saxon Indus— j

Sobering Plough!

17*8 17fia
284 l 284

970
184
264
, 94
! 29
94
454

10

184

264

9

294

94

447 B

1S*B ! 19*8

28 s ,

324

117#

14

295a

48

134

22

104

ID

174

31T b

377 B

144

30

174

14

334

284

324

124

14

294

454

134

8270

104

97b

175a

SlTg

374

1350

29

174

1350

527a

524 I 33
284 2B4

397? 3670

207i

144

7

14

284

21

144

7

14
27 7 B

Stock .

June

.31

June

18

Schlltz Brew....

__

167b

Schlumbergar..^

5810

381$

SCM

21Tb

21 lj

Scott Paper

14*0

141?

Seawn

23t a

24

Sealed Power —

SurlelGD)-

Sears Roebuck..
Security Pac,.._.

Ssdco.. —

Shell Oil—

Shall Trans.:

SherwloWtns —

Signal —

Signoda -

434
304
... 324
J 187?

284

284

37*8

281 b

20*?

164

484

Simplicity Ratt-1
Singer

skyline -.—J

Smith lntl — i

Smith KflneBeck]

Sonestn Inti..

Sony

Southeast Ban kg
5th. Col. Edison .

Southern Co.

Sthn. Nat Ret—
Sthn. N. Eng.Tel.

Sthn. Padfic I

Southlands — j

S.W. Bancsharad

Sparry Corp. J

Spring Wills- !

Square D.-....--.
Squibb
STD Brands Pali

ret

. 77*
11 4
144
2BTs
634
10
13
154
514
12
224
424

30

31
234'

223b

29T 8

94 s ,

344

234

444

304

327 8

19

284

294

37

284

20*8

I6*s

4860

74

114

IS 5,
26
64 .
10 .
134
15Tb
314
1210
22*0
424
294
304
234
224
25*0 '
246b
584
234

Std Oil pllfornlaJ
Std Oil Indiana...

Std Oil Ohio j

Stanley Wk*. .
Stauffer Cftem.-i
Sterling Drug— |
Stevens (J.P.).
Stokely Van K....I

Storage Tech |

Sun Co

Sundstrand —

Superior Oil

Super Val Strs....;

Syntax -

TRW -

Taft J..-.'.,

Tampax- — |

Tandy ......

Teledyne

Tektronix

Tennaoo

TesoraPet

Texaco ............

Texas Gomm. Bkj
Texas Eastern —
Texas Gas Tm _.
Taxes Instrim'ts
Texas Oil ft Gas—
Texas Utilities ...

Textron i

Thomas Betts —

Tidewater —

Tiger lntl

Time Ino —

71 mas -Mirror—

294

407,

324

144

184

2050

143,

287 B -

293,
411|
334

144
Z84
21

- , Z75 »
214 21
334 | 33
234 23*,
25*4 25*«

174 164

35 I 347s
474 j 474
29 20

324 1 324

Timken——!

Tipperary-

Tonka....——'

Total Pet.

Trans—

Transom erica....

Transway..

Trans World

Travellers. —

Tricantrol

Tri Continental...
Triton Energy ..J

Tyler I

UAL

umc inds.

Unilever N.V.. '

Union Camp.

Union Carbide^-

Union OH Cal |

Union Pacific-

Uniroyal

Untd. Brands —

UnL Energy Rss.1

US Fidelity G

US Gypsum—

US Home

US Inds

US Shoe

US Steel

US Surgical-

US Tobacco-

US Trim.

litd.Technolga.

Utd. Telecomms.
Upjohn.. |

Vartan Assoca. — |
Ver nitron— —|

274

974

924

241|

17T,

284

304

477,

224

824

264

22

184

441,

194

74

284

394

4BH

6

191,

S3,

324

194

194,

18

£1

67,

18

11T b

144

I6T0

74

624

434

414

324

334

7t b

77b

284

384

284

ll*e

104

33
184
20
434

34
364

17

407?

4270

36

94

Virginia EP-. 124

Vulcan Matria— . 49
Walker (H) Res... 124
Wal-Mart Stores. 604

Warnaco — . 30*,

Warner Comma.. 474
Warner-Lambt „ 204
Washington Post 334
Waste Mangt — 1 284

WelsMkts. “

Wells Fargo—

W. Point Pappi— .
Western AlrilnssJ
Westn. Nth. Amr.
Westing house — I

Westvace-

Weyerhaeuser.-.

Wheelobratr F.J
Wheeling Pitts ...

Whirlpool

White Consol td..

WhKtaksr

Wiokes

Williams Co. I

Winn-Dixie Str-.J
Winnebago -!

Wise Elao Power

Woo (worth _.i

Wrlgley

Wyly !

Xerox I

Yellow Frt Sys ...

Zapata

Zenith Radio-.-.

27

204

£34

54

84

243,

194

234

274

13

294

244

234

3

154

364

64

314

lBIg

8"

514

23t b

174

284

304

484

23

814

284

224

18

444

18t b

74

284

394

4»7b

64

20

84

313,

194

20

184

207?

64

1770

12

144

165|

74

534

434

404

334

334

74

B

28i g

384

284

114

104

33

184

20

434

344

354

174

394

434

364

94

124

444

124

494

304

474

204

33*,

284

267.

204

£24

64

84

244

194

63Sa

28

13

29

244

24

3

154

364

64

314

174

314 ( 317g
84 84

314 I 314
114 l 114
15 15

104 104

NEW YORK

Indices

—DOW JONES

1982 Slnoe Cmplltc

21

18 17

16

• Industry 789.S6 1 7Ba.G2i79L4B!796J0 801.27; B01.8S

i l

H’me Bnds.i 88.481 09.04

l

3

68.94 [ ss.s&r SB,

Transport..! 305.73; 5fl6Jl!30B.35310.78'312^0| 314^2

Utilttlea—.i 10G.15( 102.70|1D7.09> 108.48; 10SJ7, 102.22 [

TradlngVol I f I
OOGt j 58,370] 65^0048.23056^

• Day's high 797.B5 low 784.26

14 !

High

! Low

j High i Low

B01.es |

882 J2

! 7B8J2

i !

,1051,70! 41 JU

(«/«

(18(B) <11/ 1/75) (2.7/ 5Z)

[ S9.SB

60J7 ,

| 66.67

127 li)

1 tVUl)

1

314J2 [

*88.48 ;

! £05.79

I 447 JB i 12J2

[

(7/11 !

am

(1B/4/81)‘ (8/7(52)

109.22 1

116.96 1

10S.61

i 1E5J2 1 10.5

|

(7/6)

fis/l) (20/4/B3) (2B/4/42)

40,1110 j

—

- —

— j —

induct' I dlv. yield X

June 4 ; Year ago (Approx)

7.08 i 6.90

6.98 ! 6.48

STANDARD AND POORS

June ' June

I 21 ' 18

1 ( I | | 1982 |SI nceCmpil't'n

i June ; June 1 June June ' i . j :

1 17 16 ! 15 I 14 j High I Low I High I Low

tlndurt'ls 119.83; U9.8SI 120.1s IZI.SB] 1223B 1224S 137.28 118.41 : 1E0.96 1 5.S2
I ! I I | «4/T) 1 ttlSi [28(1 naff 130/81*2)

{Comp'site! 107.20 1 107.28 107.60' 1ftS.Br HW.Gfl: 1H3J6 122.74 ! 1D7J0 | 1*0.62 > 4.407
I I I I I I (4/1) ! (21.61 <28/11/80! (1/6/591

Induat'l dlv. yield %

; June 16

June 9

! June 2

; Year a go (approx

' 6.97

1

5.96

6.79

4.73

Indust’f P/E ratio

1 7.66

'

7.66

7.66

1 9.61

Long Gov. Bond yield

I 13.88

13.39

13.24

1 12.48

NY. S.E. ALL COMMON

Risoa and Falls

,Juns21 Juno 18 Junel7

| ! 1982

June i June June June i Jmu« Traded |1 .848

21 I 18 17 I 16 1 High \ Low [ 743

61.7361.7451.9662.67J 71.20 j 61.73 UnchanMd..— ! 453

■ ■ * ; 1 S,<S) ESE ffitd 12I

1,828

1.830

452

! 378

928

.1,055

448

419

8

1 7

171

< 162

MONTREAL

June June
21 18

June

17

Industrials > 2*8 .bb[ 262.52' 252.62
Combined j 257.S7; 258.S8| 840.84

I

June!

16

1982

High

Low

34.81; K2J8 (4.1) ! 243.08 (ZlfB)

244.17) S16.0S i4.1) | 257J7 i21,6)

TORONTO Compoaltel 15S5.7! 18B5.H 1577.61 1404.81 19SS.5 <4.l) .1 1365.7 (2m

NEW YORK ACTIVE STOCKS

Monday, Stocks Closing

traded price
Cities Service 2. 763,800 53'«

Change
on
day
+ *?

Citicorp

Stocks Closing
traded price
517,700 24i*

Chengs
on
day
- \

Mesa Patrlm..

. 1,509,300 13>

- 2’,

RCA ....

T

Dsy Pwr. 6 Li. l.W7,600

-

Am. Tel.

& Tel.. 511. 000. 50*

+ =a

ISM

. 697.100 58 s *

+ >4

General

Monro 509.300 45 5 »

U.S. Steel ....

. 553.™ 13>,

+ >*

5onj'

4S3.000 12 r e

- L

June June June June 1
22 21 18 17 -

High

1962

AUSTRALIA > I ;

All Ord. (1/1/80) : *99.8 J 462.3 j <68.8 | 47E.B I 89GJB (4/1)

Metal ft Minis. OMW \ 308.fi 5103 1 521.7 I 529J \ 426.1 (5(1)

AUSTRIA i I

Credit Aktlen (2/lfSD 1 H.4BJ BQ.B2 i U47| B0J2I 69.86(4/1) [ M.4B (22/B)

Low

408.8 (10/8)
508.6 (2£rfl)

BELGIUM

Belgian SE /3T/12/H)

(U)

DENMARK I

Copenhagen SE (1/1/78) ; 110.04} 188.81 1 10848} 188.87

83.06

82Jb)

82.81

FRANCE 1

CAD General (31/1 2/81) | 100.7 ! (ul ! T00J
Ind Tendance (31/12/81)] 111J | UW | 110.0

1M.2

1133

GERMANY 1

FAZ-Aktlen (31/12/68) 1 (u)

CommerzbanklDeelSBB)' 88 1.2

222JS 224 J2 (c)
67B.1 686.0 . (cl

182.43 (614)

1Z8J2 (26/2)

111.8 (17/B)
124 J (12/fi)

88.42 (28/1)

188.38 (18/8)

88.8(4(1)

87.7(4/1)

238^5 IB/4)
729.8 (8/4)

HOLLAND 'll’

ANP-CBS General (1878) 1 87.S 87.1 87.8 i- 88.3 | 9EJ (10(6)
ANP-CSS Induct (1878) | 87.8 ; 87.5 [ 67.8 j 88.4 | 74JB (10/1)

218.35 nt/ 1 )

66E.7 (18/1)

84.8(8/1)
88 J (4/1)

HONG KONG ' ) 1 | >■

Hang Sang Bank (31/7/94; (27*. 10} I2B8J 1(1303^8,1319.88; 1445.32 (12/7) ] 7 128.83 (9/3)

ITALY I

BaneaComm ltal.ri972) [ 16SJ55; 1B0.74|

157,

’.Bli TBBJuJ

212.88 (19/S)

JAPAN" 1 1 ;

Dow Average (18/5/49) i7l!7.S6'7091,ll 7127.7 1710.29
Tokyo New SE (4(1/68) [ 538JI6! 583.80'. 610.37! E38JW

792BJ6 (27/1)
683 JH (27/1)

15828 (17/6)

8888.63 (17, -5)
620 JO (17/3)

NORWAY
Oslo SE (1/1/72)

I 118.24

I

115,58: 115.4 I 11&21

SINGAPORE

Straits Times (1886) j 688.7l|

687 712.21

South africa

Gold (1368)
industrial (isss)

(u)

(u)

2*1.1 857 J 8HL1.
B1SJ 6204 525.8

718.14

SPAIN

Madrid SE (30/12/81)

87JN

SWEDEN
Jaeobeon ft P. (1(1/51) bB&JMl

SWITZERLAND
Swiss BonkCpn.lSim/Mi 246 J

(cl

8SJ4! 88jej

158.38 (28/1)

188,12 (1/4)

818.78 (8/D

- 688.1 (til)
71 L7 (8/1)

887.48 (8(8)

841.1 (21/8)
B1GJE (21/8)

WMOm

8 7 JO (22/6)

BSBJBj 585J5I 587.1^ 886J2 (22/1)

241.4

243.4 [ 243 A j 266.1 (11/1)

WORLD I

Capital Inti. (1/1/70) ! -

688.82 (23/4)

241.4(21.8)

123.7 | 124 J ! 1S.4 1 147J (4H)

123.7(21/8)

(“*) Saturday June 19: Japan Dow (e), TSE (ej.

Base vdma of eh indices ere 100 except AiutiaOe AR OnflAity W< W « M >
500. NYSE AS Cnnmon-SO: Standard and Poore— «h end T onwrtq- 1 JQ0; die
Int named fused on 1975. t Exehnftog bonds. 1 400 industrials. 1400
fcidvftfiile pies 40 Utilities, 40 Fmenmsle and 20 Tfanspom. aOoesd
u UnaviJeble.

J

i

FURTHER BARGAIN. Jaunting
and short covering gave- Wall :
Street a' fresh slight rally In
fairly active early, trading yester-
day. •

The Dow. Jones- Industrial
Average, which failed to hold a
seven-point initial recovery on
Monday and' closed only L33
harder on balance, was up 2.38 at
792JJ3 at 1 pm yesterday. The.
NYSE All Common Index edged
up' 6 cents to 561-79, while
advances -led declines: by a
margin of about 30 issues. Trad-
ing . volume totalled . 39.S5m
shires,: against the - 37.63m
registered at 1 pm on Monday.

Interest continued to focus on
does Service, by far the most
active issue with turnover of
some l£m shares. The stock was
up 1} to S55.

■' Mesa Petroleum, which lost its
battle to acquire Cities Service,
picked lip 5 to Sl-H on heavy
trading, while Gulf Oil, with its
take-over bid. for Qltles of 563
a share, shed j to $27&. -

Oil stocks generally eased, with
active Phillips Petroleum off 4 to
$28£ Superior Ho S25J. Standard
Oil California $ to $28£ and Shell
I to $36J.

High Interest rates caused
selling of Utility issues, and tbe
Dow' Jones Utilities Average
was off about half a point the
only market index on 'the. down
side. Among the more active
issues in the group were Caro-
lina Power, unchanged at $20,
Pacific Power and Light, off i
to $16i, and Peoples Energy, off
i lo $7i.

MCA climbed $2 to $61$. The
stock has been steadily rising
since the opening of MCA’s film
**ET." which has been very suc-
cessful at the box office.

THE AMERICAN SE Market
Value Index improved 0.55 to
246.23 at 1 pm. Volume 2.61m
shares (2.91m).

Canada •

Markets were mixed at mid-
day after moderate activity.
Halting the recent slide,, tbe

Toronto Composite Index .firmed

1.6 to 1357-3. although- overall
declines red gains on- the
Excbange'-by-170 to 131.

Eight . of. the 14 major indices
were, higher. Gold issues showed
some improvement with the
index: up - 47*5 to 1,396.2 as Dome
Mines rose 4 to C$74 and Camp-
bell Red lake 1 to CSlOg.

The OH and Gas index put on

18.6 to 2^35.1. and Metals and
mends 4.7 to: 1,1932.

Tokyo ^

Closing prices for Norm
America were not available
for this edition.

With: the yen picking up
slightly, after its recent marked
weakness .’against the U.S. dollar,
and 1 the steadier Wall Street
showing ■ overnight also aiding
sentiment, selective • Tokyo
shares; especially ' in the Blue
Chip category, recovered some
ground yesterday.

However, - . business volume
■ came to only -,150m shares on
the Pint Market, although this
exceeded Monday's extremely
thin 110m.

Tbe Nikkei -Dow Jones Aver-
age, which had. declined for the
past sis trading days and was
down 36.59 on Monday, recouped
36.85 to 7,127.9& The Tokyo SE
index picked up 2 l 46 to 536.06.

Traders said, the market Is
likely to remain u a consolidat-
ing phase for a^ while longer,
with Its fate hinging largely on
how U.S. interest -rates will
move and how Wall Street
responds. However, they added
that market participants who
believe that U.S. interest rates
will begin , to show a sustained
downturn in the near future are
a decided minority.

.Eimited bargain- . hunting
pushed up a number; of export-
orientated issues and other Blue
Chips, but; Domestic Industry
issues mainly recorded narrow
mixed movements; -Electronics
issues were preferred, while
Oils edged up on the yen’s
steadier performatfciL- ‘

Matsushita group shares, in-
cluding Matsuflltita. . ' Electric
Industrial, up Y30 ' at Y1.050,
Matsushita Elertrte TiadUng and
Mats ushi ta -KotobnJd ' Elec-
tronics, drew attention. Traders

said prospects for high, growth
in the field of Industrial-elec-
tronics were apparently, behind
the popularity of those shares. .

Nippon . Electric rose Y8 to
YS10, Fujitsu Yll to Y7&0, Sony
Y70 to Y3^90, Victor Japan Y60
to Y2,260, TDK Electronics Y80
to Y3.300, Fuji Photo YSO to
Y1.440, Kicoh Y4 to *475 and
Toyota Motor Y20 to Y1.020. ' ■
Speculative gold v mines re-
covered, 1 wrth "* Sumitomo 'Metal'
Mining adding Y50 at"Y766 after
falling Y44- on Monday.

Germany .

A half-hearted technical re-'
covery in line with the overnight
Wall Street trend left Bourse
prices .mixed to firmer..- The
Commexz&ank index, down 12£
in the prior two sessions, re-
trieved ZI at 6SI.2. -
- Brokers,, however, said, trading
remained listless " and could' not
be described as having witnessed
a pronounced change of senti-
ment by adorned market. They
again cited the 'U.S. dollar's
strength, and interest rate uncer-
tainty as factors hampering a
more ambitious', recovery for
West German shares.'- interest
in equities 4 also remained
dampened by a continued down-
trend in Domestic Bond prices.. -
Hopes that AEG's drastic ; re-
structuring plah. will bring rthe
company back - to . profitability
boosted its stock DM 2.40 to
DM 31.20. Tbe Electricals con-
cern fell DM 3.30 on Monday
to an all-time closing -low..
Siemens put' on DM 1-60 to
DM 211^0 and SEL DM 3£0 to
DM 239. - . . .

Motors ' were helped .by. con-
tinued high production’ in May,
and- Daimler advanced DM 4.50
to DM 289.50, BMW . DM: 1 to
DM 201 and Volkswagen'
pfennigs ; to-DM 141-80. -
Builder Holzmann more than
recouped Monday’s DSCj 9 .loss
by rising ^ DM 13 to DM .404
ahead of ” results. In .Sti'ets,
Hoesch rose DM 1.60 to DM. 26^0
on detnand from a. major-. com-
mercial hank.

Australia

The market decline continued

yesterday, t/ot at a slower pace
■ with .Metal stocks' showing aoma
. resilience in. line with general
^ metal prices, overseas.

Tbe. All ".Ordinaries index
. slipped 2.5 more to 459.8, mowng
closer to the 455.6 level set on
March TO this .year, .which is the
lowest point for the index since
Its/ compilation at the be^zming
of I960. The Oil and Gas Index
-lost 6.4 at 412.6 and Industrials
4.8 <it 627.6, but with the Metals
and Miimrals index just 6.9 easia
at 309.6.:

•nrere was scattered bargain
hunting, , but brokers attributed
-the overall' easier tendency Ip a
continuing lack .of interest among
Investors. ..

... Overall ; market leader' . BB?
: opened weaker/ but end ed a net
6 cents -tip on the day at AS7.06.
GSR .picked up '5 cents to
A$2^8 and. Western - Mining 2
cents to ; AJ2.90, -but Central
bforsenutn Gold lost 10 cents
in ore to A53.10 and . North BH
F cenls'td A^l^O. Oil 2 nd 'Gas
issue Santos rallied S cents to
AS480. • '

Hong Kong

Drawing a litle encouragement
from the Wall Street rallying
attempt overnight, Hong Kong
markets staged -a very mild tech-
jikal- recovery in further light
trading yesterday./

.Part of the improvement bad
been- eroded by tbe' close, with
the Hang Seng. index; whieh fell
88.77 ..on -'Monday, retrieving a
mere, 7-49 oh the day at -1374.10
after tb- . mid-session . 13-point
.'gam. : Turnover amounted to
HK$15£06m ■ on 'the four
exchanges; compared with the
previous. 1 day's; HKS147.10m.
./Brokers, called the response
predictable given the U.S. market
artion ' on; 2 Monday. They cited
the light’ trading activity as evi-
dence that most major Investors
remain, .on .the sidelines, with
some, smaller ' operators simply
looking for quick short-term
profits/ They predicted that the
market, trill continue' to take its
cue from, Wall' Street in coming
days; ■ V 1 ’

CANADA

Stock

June

21

AMOA lntl...;

Abttlbl - __

Asnieo Eagla

Alban Alum in

Algoma Steal 1

Aftbesto*^.

Bk Montraa I. — 1
Bk Nova Scotia.-
Basic Raaourcas.1

Ball Canada |

Bow Valley

BP Canada -4

Brasoan A.

Brinco

B. o. Forest..

CIL Inc.-...- ,

CadlllaoFalrvlaw

Can Cement [

Con NW Energy J

Can Packer?. —

Can Trusoa-

Can imp Bonk....
Cdn Paclfla
Can P. Ent.-.-..-
Can Tire...—

Chieftain ;

ComJnco

Cons Bath St A. ,

Cent. Bk.Canada|

Coaeka Raa—

Co stain-

Daon Pavel-.....-

Denison Mines....

Dome Mines. —

Dome Petroleum;

16
15i«
5 •
211s
26 k
11
175*
2008
2.50

18k
14 k
231s
14Ta
2.80,
5k
10k
554
BL

20k

30

80

llae

XQ»V

13 k
34

21*e

347 S

13k

65*

3.90

6

2.30
18 k
6*«
5

June

18

Dorn Foundries..! 27k
Dom Stores....... 14k

Domtar.. | 15**

Falcon N I ckle 33**

Genstar- _... 11 s *

Gt. West Ufa. — 1 190

Gulf Canada. I 13 k

Gulf Stream ResJ 1-09

Hawk Sid. Can ....

Holllnger Argus-I 26

7H

Hudson Boy Mng
do Oil ft Gas-.

Husky Oil

Imaaoo — - -j

Imp Oil A. .'...

Inco

Indal ...

Inter. Pipe.—

135o

l.Bis

5k

37

227b

11

Bk

16 s *

Mae Bloedai. I 16 k

Marks ft Spencer 1 , 7k

Massey Ferg 2.40

Molntyre Mines. 4 25**

Mitel Corp - 19 k

Moore Corp- — 335,
NaL Sea Prods A< 6**
Noranda Mines-.! 11 s *

Nthn. Telecom..
Oakwood Pet

Pacific Copper-

Pan can Petrol..

Patino-

Placer Dev.

Power Corp-. —
Quebec Strgn—

Ranger Oil..........

Reea Sterehs A,...
RIoAJgom—
Royal Bank

Royal Trusco A..,

Sceptre Res — ....
Seagram
Shell Can OIL-.-.
Steal of Can. A..-

Teck B

Texaoo Canada..!

homson News A
Toronto Dom Bk,
Trans Can Plpe...
1 rnn? Mntn.OilA.
WalkeriH) Rea..—

Westcoat Trane-

Weston (Geo)....

455,

9lj
1^0
66
1*7 *a
12 10

8*n

1.90

6*e

lll B

27k

IB

12lc

6.G0

•57k

165,

177g

6*8

266?

185*

225?

T*
168?
1210
29 k

16k
15k
5k
BD80
23 k
Ilk
18k
20*e
2.50

185?

14

23k

14k

3A30

6*«

195*

83*

9k

21

30k

21

17 k

25k

13

345*

21k

34k

1370

6 s *

4.00

6

2.46
18k
. 1**
I .6*8

27k

15

16
35k
113*

196

13*o

2.06

73?

26

135?

16k

S*e

361?

22T b

11

9 !"

16k

163?

B .
2.42
86 s *
17S*
33
6Ts
12

467 B
B*«
1.20
65k
17k
12
8 k
2.10

6k
11
27 k
19 k
12k
6.50
67k
16k
17k

Sk-

266 ?

191?

227|

17k

7k

16

12

30k

AUSTRIA
June 22

Creditanstalt

Lands rbank

Perimooser— ....

Semperit

Steyr Daimler .—
Veltselier Mag —

+ or

-1

BELGIUM/LUXEMBOURG

June 22

Prlda

Frs.

+>r

ARBED ........

Banq int A LUX.

Bekaert B -

Giment BR

Cock a rill

EBES-...i-»-

Electrobel.

Fabrique Nat

G.8. Inno

GBL(BruxL) .—

Gevaert...—

Hoboken

Intercom—..—..

Kredletbank

Pan Hldgs,.,.. ......

.1 1,082 —8

4,100

2,150 -10
1,420 .+4
141 -7
1,616 -10
5,250 -20
3,405 +8
2,850' 420
1,3841 +.34
1,600) .-10
2,960 t-40
1,300) +2
4,700; -30
6,300* +70

I BHjGKJM (continued

Price

+ 01'

Fra.

- Petroflna —

4,49!

-20

Royalo Beige..:..
Soc. Gen. Banq-

6,15C
2,2 5 £

—140

SoO Gen Beige-

1,174

3.38C

+ 24

Soivay — . —

1.85!

-45

2,421

UCB...:

2J3BI

—100

VieilleMont

2.02C

DBMMARK

June £2

Price

+ or •

%

—

11S.I

;

307j

+0.4

1 CopHandeTsban

126

"+3I2

■ ra-iiiww.LBP

320.:

126

nr -,-

■hrrcferM

.1 8G.i

—0-2

I Forende Berygg

. ’ 834

—2

I Fore node Damp. 409J

+2.6

B 1 nTnfTIf
ifppr.7i-np»

tm >■ ■■

Mi

-1.4

Nord Kabel

125.1

1

1,53/

be

-20

122.2

117

i 178

+ 1.4

496

—3.4

1 mztmBm

89.4

-0.6

FRANCE

-•

Jura 22

Mae

Fra.

+ ®r

Empnmt 4iX 1B71

1,683

-14A

Emp runt 7% 1875.

cne 53;

6.03C

'3,086

462

—28

1 1 t !tt 1 p

117.&

—0.6

U F.T 1 1 J ■ 1 1 il l ^

137

-3

BIC

490 .
630

.-^•6
— 11

BSN Gorvals..

Carrefour.

1,342

1,378

SOB

-13

-12

Club Modi tor

—6

CFAO

630

CSF( Thomson)..

142

+'i

de Bancalre

163

-2.5

Cfe Gen Eaux ...

300

-3

Coflmog—

119.1

+0.1

Creusot Loire ....

78

-1.4

CFP

134

+2.8

Dumez

Gen.- Occidental

1,038

410

-12

-QA

49.5

-1.5

233.2

+ L2

L’Oreal

900

Legrand

Machines Bull

1,460

31JS

—16
+ 0.8

1,306

+ 8

651

—9

Moet- Hen nosey..

694

-1

fetoullnex

64

Pernod Ricard—

339

-9.5

166

—1

146 .

+0,8

119

—5

Radiotech

267

+ 2

930

—3

321.1

+0.6

582

+ 2

1 f m cisesm 1 mi m

770

-g

1 T?

mmm

GERMANY

June 22

Price

+ or

Dm.

IrTTmHJKIBM

31.2

+2.4

4S7

BASF

119.9

+0.9

BAYER

114,6

+0^

Bayer-Hypo

807.6

EDGli

Bayer-Vereln

268.8|

-0.2

rrnvMWMiRMMi

201

+1

169. 5

+ 0.4

(i ( 1 [^1 f j • — 1 1

136.6

-0.3

[•vllr r 3 |f ej iJ \ j 1 1 1 1

44.5

+ 1

f*!: Illl \ J - !J iV-SBU

289,5

+4.5

IDegussa

206,7

-4.3

183 |

+ 1

Deutsche Bank...

3&3i

-0.3

DU Schulte

168

-1A

Drasdner Bonk...
GHH

148,8

179.5

49

-0,7

Hoechst. f

108 A;

+0.3

Hoeach — f

Hozlmonn (p)

26.2

404

+ L6
+ 13

118.7

+ 0J

IE!DBS¥-yiMI

136

+0.5

Karstadt

Kairthof. ' 1

203

1.73

176

+ 3

KHD... „i

+0,8

Kloeoknar

64.5

+0.6

Krupp.. |

68

276

-1A

63.6

158

+4

^ - !rr' MijWml

139,7

+0.9

252

+5’

y -ir.rlt'M r: fllHRil

198,6

Mueneh Rock.....!

647

+2

Preusaag

Rhein West Elect

186.7

163.8)

-1 s

—0.5 S

Rtisenth&L.

255

-4 S

273

2IL6

82.6

139.5

Veba. „ j

130.3!

-3 t

Vorein-WesL. !

270 :

+ 1 y

Volkswngon..

141.8,

+ 0.3 z

HOLLAND

■ ■ June 22

Price

Fla.

+ or

acf .Holding

Ahold—...

akzo..;

ABN...........

AMEV

AMRO-

Bredero Cert...-
Boskans Western
Buhl-man n-Tet

Caland Hid s 1

Elsevier NDU ......

Ennlo/u—

Euro Comm Tit-:
GlsLrBrooades.-.

Helneken -

Hoog ovens,

Hunter Douglas-

Irrt Muller-

KLM

Naarden —

Nat Ned cert

Ned Cred Bank— |

Ned Mid Bank....

Ned Uoyd

OoeCrtnten-

Ommeren (Van) J

Patch oed.

Philips '

Rljn-Schelde
Rotaeco— .
Rodamco— .

77.5!

77.1,

23.5|

280

81.61

48.6
186

46

33.2;

soa 1

148.5

120.5
72.5

70.7
56.1

+ 2.
-0.9
+ 0.2
+ 1
+ 0.7
+ 0.2

—0.6

+05
+ 0.5

+2:1

+0^5

14.51 +0.6

8.1

19^

88J

22.5
110.7

31

131J9!
110J9I
2 03. a
21.B
37.7!
22^1

26.6
200.5
124.41

Rollnco

Rorento —I

Royal Dutch— -I
Slavenburg's— . 1
Tokyo Ps«Hg....!

Unilever

Viking Res

VmfStoric

VNU

West Utr Bank-.!

s.+0^

+ 0J3
— 0.7
-OJ

+62
-2.4
-0^
— 0.7

^0.3

+0.

+ 0.5
-0.5
+a4

AUSTRALIA

June 22

I Price
lAusLS

! 19S.li +0.1

161
■ 66.4|
82
190
145.51
109
44 JB
54 Jt
78.5,

-0.6
+ QJJ
-1JJ

+i*

-a

- 0.8

+ 0.8

ITALY

June 22

Price

Ure

+ or

Auteur Gen- ! ISD.BZG

BaneaCom'le.-.j
Bastogl Fln-i......

Centrole

Credlto Vareslno

Flat !

Flnslder— ... :

Invest !

52,009
105 .
2,700

6.300
1,650

31 '

2.300

ItalcementI- i26,400

Montedison - 96

Olivetti..: 1 2,850

Pirelli Co ! 2,319

Pirelli Spa ! 1,289

Sniaviscosa 682

Toro Aisle-. 11,350

do. Pref 8,950

+ 1900
+3
+ 310
+290
— 1
-2

+ 410
+ 7
+ 30
+ 19
+9
-7
+ 740
+ 540

NORWAY

. June 28

' Price j + or
iKronen —

Bergen* Bonk ' 104 ' — O.S

Borregaard- — ■ 108.5! -

Credltbank- ' 127.5' —1.6

EJkam — 1 46 j —0.6

Kcjemos - 306 ' —19

Norsk Hydro..... J 272.5! +1IJ

Storebrand .i 175 i ...

SWB3EN

June 22

| Price I + or
'Kroner! —

AG A. — 192 l

Alfa-Laval-.L — 204
ASEA ! 176

Bonden......—

Ericsson
Esutte(Free}

160

212

82

209

137

jpmrberg— ' 1 27 1
■landslshn.! 99
sh Match J 105
[Free}«.-J 135

+ 1

— l'
-+0.5
-1
+2

—1

.—1

-3

-5'

» 114 \ -2
-I
-1
-1
-^11

,..J 139
...,r los
....I 133
w-.; i7o
‘466

SWITZERLAND

- • i

June 22

i + or
Price* -
Fre. 1 .

do (Port Certs)-;

480 -1C
860 +10
UStf +10
«0 < -+30
1,660 '+80
a^OQL-30
4301 +5

1,280 -10
,.:j boqi

.-Li 3,310| +15
• 1,155? +15
?*■ 213, +1

3,B75j ....

IM 528. +8
ItsK .270; -10

1 683; +11

-..! '279' +4
_.| '6,900 — 10D
. 985 +10

ANZ Group.
Acrow Aunt . -- J
Am pal Pet .._ —
Assoc. Pulp POP
Audlmaa —
Aust. Cons.lnd-
AusL Guarant ...
AusL Nat. Inds—
Aust. Paper — -
Bank NSW — _
Blue Metal
Bond Hldgs.-.—
Bora) -J ^ ,

Bl’vIMe Coppar-J

Brambles Inds—
Bridge Oil —

BMP

Brunswick Oil ...

CRA — -

CSR -

Carlton A Utd

Castlemaina T>»
duff Oil (Aust) ...

Do. Opts

Cockbum Comt
Coles (GJ.)-—

Comaleo

Costaln

Dunlop.-

Elder-Smith G.M.

3.60
1J0
Z.85

1.60
0.06
1.42
JL20
2.52
1.68
2.52nJ|
1.36
1.12
225
1.08
2JSQ
3.0
7.06
0.14

»^5

2.55

1.90

3.66.

036

0.38

3-30

2J0

1.88

1.40

CL95

2^5

+ or

-OJU.

— 0.041 Marul ;

+ 0.021 Matsushita
+ 0.01 1 M'taEloc WorksJ
M’bishlBank-—
—O.05lM'blshU5onK.„

+ 0J)1 1 M'bishl Elect.:

+ 042 1 M’bishl R1 East-

Endeavour Ret-J 0.16
Gen. Pro. Trust-. 1.49
Hartogen Energy 2.0 0

Hooker — . OJl

ICI Aust. -I-..—. 1.85
Jennings ; ■ 3_2L"

Jlrnb lanalSOcFP OJtO

Jones (D)..,.;....-. 1.75 .
Leonard Oil—.— 9.18
MIM_ J. 2,50'

MeekathorraMs.1 2.00

Meridian Oil: — ! 0.13
Monarch Pet- ...! 0^)6

Myer Emp. 1 1-38

Nat. Bank 12.38

News —FI SO

Nicholas Kiwi —

North Bkn Hill |

Oakbrfdge,-'.—
Otter Expl — .....

Pan con _

Pan Pacific L.

Pioneer Co—.

Queen Marg't G.I
Reckltt ft Coin -

Santos

Sleigh (HQ

Southland M’n’g.

Sparges Expel—
Thos. Natwids_.

Tooth. —

UMAL Cons .'..I

Valient Oonsdt..
Waltons

Western Mining.

WoodSIde. Patrol

Wootwortha I

Wornudd imi

1.15

1.70

1-36

0.30

125

0,10

L22

0.08

1.66

4.80

0.93

0J8

0.16

136

2.95

1.60

0.10

0.75

2,90

0.66

1,60

2.55

+ 0.06
—0.02
,+ OJH
+OJH
-0JD2
— OJK
— 0J11

+ 0.02
— 0.17

Z<j'i4

-044

— O.K
-0.B1
-CJS

— o.m

-0^

+'dj'i

+0.021

^-0.02

— o^s
-0.06
— 0JI6

-0.D3
-OJ1
— 0JI1
■^ 0.01

' + OJJ6
•^O.SI
— 0J1

— 0JI8

— 0.02
— 0.05
— 0.01

MHI— 190

Mitsui Co/— ^ 316

Mitsui RL 614

Mltsu-kosht— '365
NGK Insulators^ 470

Nippon Denso 1,160

Nippon GsWtl„ 645

Nippon Meat 376

Nippon Oil — 873

Nippon Shinpan.. 765
Nippon SteeL.— 137
Nippon Suisan.^. 217

NTV — .... 3,850

Nissan Motor— —1 801

Nisshln Flour 339

Nltshln Steal— ■ 143
Nomura 410

NYK. .i. 250

Olympus. 907

Orieite/-.; 1.32D

P/onear ... 1,540
Renown-———— 700

Ricoh;..- ..... 475

Sanyo Elect—... 4iB

Sapporo — 264

Seklaul Prefab - 6S5

Sharp 613

Shlsledo ..... 840

Sony....—...— 3,390

Stanley— 335

Stomo Marine — 220
Taihel Dengyo.... BIO

Talsel Corp 225

Talsho Pharm -682

Take da. 800 .

TDK ,—3,900

TeJJIn. 210

TelkokuOIl-. 841

TBS — — 427
To Wo Marine...... 448

Tokyo ElectPwr. 840

Tow* Gfts 108

Tokyo Sanyo 425 '

Tokyu Corp 201

Toshiba 315

TOTO....... 406

Toyo Seikan -421

Toyota Motor.—.. 1,020
[Victor ... >2,260

HONG KONG

June 22

Price

H.K.S

+ or

Cheung Kong.

Cosmo Prop. I

Cross Harbour....:
Hang Seng Bank..

HK Electric

HK Kowloon Wfrfj

HK Land....; J

HK Shanghi Kk-
HK Teiephana.-

Hutchison Wpsu.

Jardfne Math —

New Work! Dev..

O'seas Trust Bk.

SHK Preps.

Swire Pao A

WtiasFk Mard A.

Wheel' KMarltTe

Wprjdjntjlldgg^

14.9

+ 0-1

1.85 1

10.4 |

— 0.1

B7.6

+ 0.6

. 6-3

+ai

4.62;

7.40|

+ QJ15

11.2

+Q.1

3J50

—0.25

15.5 !

+ 0.1

16.6 (

3.871

-0 jn

•6^5'

+O.0b

S.85j

+ O.W

10.6 1
S.soi

+03

+ 0J5

4.6 1

-oa

2.7 !

JAPAN

June 22

Prion 1+ or
Yen j —

Ajinomoto.. 1

A mad a

Asahl Glos* n . M .-..i
Bridgestone

Canon-..—.—

Citlz«n i

Dale!.—...—.

OKBO,

+2

B26
615
480
430 j +2

-765 I

286 [ -2
612 I

484 ;

Dal NJppon'Ptg 525

Dalwa Houml. ; 375

Daiwa Seiko. ! 371

Ebam 376

Eisoi 814

Fuji Bank.— : £00

Fuji Film— 11,440

FuJlsawe.... — . L 3 10

Fujitsu Fanuo.... 4,3€-0

Green Cross, ;2,100 < +30

Hasegawa, 64S i

Heiwam East—; 547 ;

Hitachi:;

Hitachi tCbkS

Honda

+ 5
-3
+ 2
,+fl

+30

+20

60

875 , +X
501 J +16

^ 785 +10

Haiuwfood — ;1.020 +20

Hoya„ ,...—/ .650. —10

JtCh (O ; 277

Ito-Hem 383 +1

tto-Yotodo 836 1 +9 '

JACCS £98 1 -2

J*L, 12^510 ; ,+ 10 -

JWCO j 850 , .

Kajifna- — 327 .+ 3 ' "

KOP Soap— ■ '503-1 —1 -
Kashlyama.,— ,|_788 "[
Kikkonian„..«^...j 368 : — £

Kirin ‘435 i — 5 '•

879 •! -1

460 ( •

360 / —10
589 i' +2

Kokuyo j

Komatsu
Konustsu Pfft ...

Konlshrolku — ,

JAPAN (continued)

June 22 -

Kubota-..

Kumgaal J.

Kyoto. Ceramic ..
Uon

Maeda Cons—

Makita-

Mftrubeni_._._

Msrudai.

Price

Yen

331

376

3,480

363

512

728

284

666

898

1,050

511

600

493

245

418

+ er

Wacoai....

Yamaha ; I

YamazaJd.

Yasuda Fire
fotejmBdjj

720

6S5

518

231

BD/T

+ 5
+ 110

+6 *'
+4
---

—7
+ 30

+6
+ 1
+ 1
+ 1
-1
-16
+ 3
—6
-10
+6
-1
+2

+11

~1
-4
-l
+ 12
-10
+ 40

+4-

+B

—5

+70

+2

+8

+2

+80

—3

+1

rt-2

+ 5
-2
+2

+ 20 “
+ 60
-7
-5

1 +4

SINGAPORE

June 82

Pries

9

Bouctead Bhrf— J 1^6
Cold Storage...,,..) 3.64

DB8 7.76

Fraser ft NeaveJJ 6.05
HewPar— ; 8.72T
(nehcap.e Bhd...J 1.9B
Malay Ban king...; 6 .03
Malay Brew..— ..j 4.06 ■

OCBC — t 8.10

Slme Darby ? a. 03

Strait* Trg j 6.43

UBO, 1-4.02

+ *»

-O.flS

-o.u

+ 0JB
+ 0J5
-O.K
■+0.04

+0.10

+0J1

+0.W

+0JI2

SOUTH AROCA

June'22

Price

Rand

+ br

Abercom ... !

AEft 01 ...... -

Anglo Am._>

Anglo Am Gold.J

Amglo Am Prop J

Barlow Rand.

Buffefi*

CNA Invest

Currie Finance..

2.35;

6.1 J

9.15*1,
59.6!

2.1
6.6

.87,9

8.6

De. Beers—' ( 4.071
DriefButoIh 2025
FSG^rufd.',^.:.^.- "

Gold. Fields 8(L— •
Hlghveld Steel...;

Hu I alls—

Kioor

Ned bank —

OKBaiaa/a;..— ...

Protaa HWgs_;^

Rambrant^:..— ,

Rennies.—

Rust Plat —

^je Hldg

, _ rOats.^!

Un’

— ai
—a.s

— 0J5

+ 0.6

+6^
— 3JS

+5.T

-41.1

1K8
'48-' '

.BA 0.B
6J9 [”+0,15
2S^t-l +o.ra
BA 4 +QJR
14.6 f —0^5
1.95j — OJB
8.4 <

•8.40; +0.05

2.85 +Q?

3.10j - —

3.85! +0M

‘ 16J5I

3.10 1 .......

Financial Band US50.731
(Discount 6f 16}%
BRAZIL

June 22-

Prtoaj + or
..] Cruzi

AcesHa...^..^; l.BO | —a 05
Banco Brasil.^ 16:60; -aw
B«goMIn_— 6.3J 1 -^O.IH
Brahma pp_,.-" 7.50! +0JS

Lolas Amor ..p.Wt

Mannesman n -OP . 2.62! —MI

Petrobr&s Pp__ ijm'

BOW® Groz.„.-; i
Unlpar.PB,. i ,.-4 i ^l-.7J?0|
VafaBloDotte^-^iaflOi +2 JO

~Furaoveri -Cr.1 1 ^a7^m.““
_ Volume: 311 Ah'.
«Wreei Rio de. Janeiro SE.

. WOT E S"' Pric e s 00 nOm_
mdhfiduat Qditagu end an
susoemted.. xd&£ dividend,
xa Ex all. .

PfB* “N* its 'quoted eri *e

1 wad traded price*. KEMIns*
*0 Ex aertp issue. xrEx ri^ts.

i-

i

' Yesterday the Managin g Director of

Sv * s 0 ^*** 1 Equipment Co. Limited, Darryl T,

- y t^ i :fvp ar ^ / iev iewed the company's continuing
vTv^:impressive growth In the 1981 faumdalyeax.

Last year Digital's turnover in the UK
rose by 27% to £142 million compared to
^ £112 million in die previous year.

‘ Barbe said the continuing recognit-
. - ^ ion of Digits as a stable yet innovative
: ; supplier in Britain depended as much on

stetf commitment as on building advanced
, and proven computers.

iT . Today, in the second part of a four part

" rj!, § review, we look a little more closely at how
; Digital is building for the future in B ritain-

■x, "%A

a Sl;

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The first step in manufacturing our
computers in Europe was taken in 1971

Over thepast 10 years we have expanded
this manufacturing capacity to the point
where we now have four factories in Europe
and a total of 2,500 employees producing
computer equipment.

Major extensions to production capacity
are nearing completion under part of Digitals
$400 million expansion programme world-
wide ■

By 1985, we intend to supply most of our
major products from factories in Europe By
the end of the decade the majority of our
computer families should be made in Europe

Digitals factory in Ayr, Scotland, was
established as a pilot operation in 1976. The
plant now employs 650 trained technicians
and customer liaison staff in a 270,000 sq.ft
building

In January 1981 Digital bought the land
and buildings originally leased from the
Scottish Development Agency. This decision
highlights the factory's unique success record
in producing computer systems for the UK
and other European markets.

The factory configures computer
systems according to precise customer specifi-
cations.

Components and subassemblies from
plants in Ireland and the U.S. are tested,
configured and tested again by Digital-trained
technical staff.

Half of Ayr's output of PDP-11/44 and
VAX systems is for UK customers, the rest
going .to continental European buyers.

Building for the future.

Seventeen years ago when Digital first
brougjht its products to the UK market the
company consisted of a single office and half
a dozen staff.

As trading increased we not only estab-
lished sales and service branches around the
country but began to build a sound infrastruc-
ture including administrative resource^ special
systems manufacturing, software engineering
and development, comprehensive stocks of
spares and a computer supplies warehouse.

Financial Times

Today most of our customers have an
engineer within one hour's travelling time
rapid access and 24-hour delivery on most
accessories and many other products.

To achieve this kind of service we have
several million square feet of warehouse space
and a computer-based administrative organis-
ation to handle the increasing volume cT
business. ,

Expansion on a large scale is underway
or planned at our new headquarters in Reading
as well as in Manchester, Basingstoke and
Bristol.

Digital Park (pictured below) is the
company's new headquarters complex on a
20 acre site in Reading

750 staff moved in during summer 1981,
including special systems manufacturing
product repair centre and central management
and administrative departments.

Advanced telecommunications and
computer systems combine vyith the informal,
open plan environment to encourage com-
munication and efficiency.

Our four part review.

Digital is constantly improving customer
support services and facilities. Tomorrow we
see how Digital sets the standards in customer
services.

Compatibility has been a crucial con-
sideration in developing Digital systems for
20 years. On Friday we see how Digital con-
tinues to make computers that will work with
other computers.

Please contact your local Digital sales
office if you would like a copy of the Opera-
tions Revievy or areprint of this four part series.

Building for the future in Britain
means more than building computers.

1 -

✓ *N. ‘

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. , , f. r . -i 3 uuati OFFICE K tADfiN^j: Dlginu rans, vvonon orange imperial r wiy^ ixcauuig# uam. itx. \u/ a**/ ooo/jh. iac» 848327/8. SALES AND SERVICE BRANCHES: Basingstoke TeL (0256) 56233. Telex 858503.

„ ,, Birmineham TeL (023) 3556IH Tdex 33706a BristolTeL (0272) 656201 Telex 449693. Edinburg TeL (0589) 30241 Telex 727m. Epsom TeL (037 27) 29666. Telex 929920. Leeds Id (0532) 588154 Telex 55643Z

Bdfast V wJml T^ 341794. London Td (01) 637 5200. Telex 27560. Manchester TeL (061) 865 8676. Telex 668666. Welwyn TeL (043871) 6Td Telex 826195. Chelmsford (Service Only) TeL (0245) 351615. Telex 9 9S66L

Makfeto Ori^Td (0622) 67756L;Teloc 966109. Newmarket Td (0638) 67201 Telex 817333. Teesside (Service Only) TeL (0642) 470444 Tekx 58618. The Digital Logq, PDP, DEC MINC QGI and VAX are Trademarks of DigHal Equipment Corporation.

2S

Financial- limes weaaesu^

Companies and Markets

INTERNATIONAL COMPANIES and FINANCE

Richard Lambert looks at the merged insurance group’s share fall National

CIGNA is confident of future policy ^““? hows

U SEEMED like a marriage marketing opportunities which listing a group with a much Ing hard to present a unified

Re-stocking stea
Eurobond prices

: 'sm-r

— ===^' f'

Fiattosell

stake ' ! .

5-: •• t •:

IT* >n-H:nn h:i» JUKe 3 mm mage marxsualg up jrui lu iu uca ihuvu — o* ”-r ** — o — —w w j/iwbui a uinw cu ■

iw-wic in heaven— but the it thinks can be created by com- wider range of products. ana cohesive image. They like lACCAC

honeymoon on Wall Street bining these specialties. " Size is Important in itself, to he interviewed together in lUiyjCiJ

BY ALAN REDMAN

Size is important in itself, to be interviewed together in

lasted no time at all. Shares “We believe that in future because -the new products and their smaH New York head-
in CIGNA, the major insurance many property-casualty pro- delivery systems that will be quarters, and defer politely to

lUlSSCS PRICES Of international bonds The World Bank is launch- C3F CODC6FQ,

in the dollar, D-Mark and Swiss ing a SwFr IOOm ; 10-year issue y - . -;;\ v .v

By Louise Kehoe in San Francisco franc sectors stabilised sligbtiy in Switzei&nd.' Credit Sm®e is. . By Rupe** CormireI! inffonw y
imAww .Mere yesterday in what most dealers lead-managing the bMfl. whim ~. : V. ••£:•■>: •

SEAvy LOSSES are described as a “ technical cor- is expected to yaeid 7i_ per hat, tb e- Italian motor -groan '
epnted by Natranal Semi- redaon” following Monday’s cent. ' • ’ ■ . " ‘ ' yesterday' - announced;:.; agree-

ondnct y the California' «vere markdown. Swiss ■ franc - bond prices .romt in. -principle 1 to- s® a 60 "•

,ase “ ■ semi-conductor chip Tiie Eurodollar bond maifcet . gained around' i 1 point,- wfafle percent stake.
nagqfacturer— the worst yet . saw mar ked J to * point Euro D-Mark bonds recovered making Argentine car; concern, •
teen m the indu^ryrln the night despite the slightly and then: dosed, im- -to - -a ■ * s grow; : :.of- - . Argentine •

r ear .ended ww 31. the com- .r . i .... «tsa in nhamniH TVsth imirlcetfi con-'- hudnoccitum ' bdtuM -

By RupeitCofTTWtJl-inRcmM- .

company created earlier ducts will be delivered as an needed for the insurance one another’s opinions,

year by the merger of Connec- employee benefit on a group market of the future will Although it is dear that

ticut General and Ina, touched insurance bads, which is a require an enormous amount of various parts of the two con-

a peak of $55f shortly after much less expensive way of financial resources and terribly stituent businesses ' will even-
trading began in April. Since delivering the product It’s long lead times,” he says. tualiy be consolidated together,

then, they have tumbled by certain to come— the only So why have the shares col- the job will be tackled gradu-
about 40 per cent, and are mj es flon is when,” says Mr Kil- lapsed? It seems that Wall ally over two years or more. For*
languishing at about $32. Patrick. Street got a little carried away the moment, the two companies

It is not as though the two CIGNA also plans to shift its ' by the marketing opportunities are operating largely as they

companies are any less enthusi- employee benefit business into of the future, and forgot the were before from their separ-
ate about the deal. “We are international markets by com- grim realities of the present, ate bases in Hartford, Connects

more convinced than ever that billing cc s experience in these' Mr Saul points out that cut, and Philadelphia,

the business logic is right and with DJA’s inter- although the merger was an- Mr Saul says firmly that the

that we can make it work, says natl(raaI network and going oounced last November, it was first quarter underwriting losses
Mr Robert Kilpatrick, former after ■ multinational dients. not completed until the end of reflected nothing more than ex-
head of CG and now joint coief „ There are only two major March. In that period neither ceptitmally bad weather con di-
executive of Cigna along with competitors in this company was in a position to tious. plus recession-related

MrRa!ph feu!, formerly of ^A. mar**/' says Mr Saul. “ It will guide analysts away from over losses. There were no special

There half a dozen take time to get our two com- optimistic profit forecasts. adjustments to the group’s '

different motives for the merger together but The shares feU steeply imme- rae„* He ttiota thlt

w.h i itt term* nf nmmium . .. a . _ .. , . . V

. .. * paiUCS frciucu iga«ui&i f wvu --v - — ” — — r " acuti tvw> j-lc uiiiJM uudJL ViC-

which m terms of prMmtm when we do there’s no question diately after the group’s first mi urn rates could start to
1116 that we are going to have a meeting with the analysts in improve by the end of the year,'

gest stockholder-owned general
insurance company in the U.S.
— a business with shareholders'
funds of over $4bn.

very powerful International April, and cracked again after bu t warns that any price

competitor here.” the first quarter results in May, increases wiH not be reflected

The merger also comes as the which were bad even by the in the profit figures for some
lines between different types of rest of the sector’s depressed time thereafter.

"" CpSTS Site standards. ...... » Watt* agrees. - Wh,

TJL *»,Jp business “The banks are starting zo Property-casualty underwrit- is happening to us in th

xfnHTnrW wprp auite different break down the barriers that lng losses jumped to $158m, marketplace would have hai

Two- thirds of CG's ore ml am prevented them from getting representing a combined loss pened whether we’d merged c

Income came from group life into the insurance business." and expense ratio of 115.9 per not I contend that we wi

Property-casualty underwrit- is happening to us in the
g losses jumped to $158m, marketplace would have hap-
pre sen ting a combined loss pened whether we’d merged or

health and annuity business, says Mr Kilpatrick. “ We are cent

►ense ratio of 115.9 per not I contend that we will
Since then, questions probably be better off in 1982

whereas two-thirds of INA’s looking at ways of getting into have been asked about whether than we would have been had we

come from property-casualty in-
surance. CG was almost exclu-

things that have been tradi- a “ marriage of equals

not merged. In the sense that

ti on ally reserved for others, really be expected to work, even with the merger expenses

sivelv a" domestic insurer while and doing a total financial There have also been unsub- we will still avoid some other -
INA was one of the* most planning job instead of just a stantiated rumours of disaffec- expenses. It will be 1983 or
— * — - tion among top executives of 1984 before the real benefits

international of the D.S. lnsur- segment of it.

ance companies

He argues that the merger the merged group.

start to emerge. Probably more

CIGNA is excited about the will help this process by estab- The chief executives are work- 1984 than 1983.”

Sharp earnings
recovery at
General Tire

U.S. Steel plans 5% pay cuts

BY PAUL BETTS IN NEW YORK

BEAVy LOSSES are

reported by National Semi-
conductor, the California-
based . semi-conductor chip
manufacturer — the worst yet
seen in the industry. In the
year ended Hay 31. the com-
pany lost $10.7m on sales of
$Llm. . In the previous year,
it reported restated earnings
of $52.4m or $2.37 a share on
sales of $Lllbn.

Fourth quarter results
showed losses of $3.1m on
sales of $284£m (up from
$2 75.4m), against a profit of
$12. 6m or 55 cents a share
previously.

National’s systems business
in point-of-sale equipment
and main frame computers
showed some growth, but
semi-conductor component
sales were badly down.

The group has remained
cautious during recent
months while others In the
U.S. semi-conductor industry
have predicted an early
recovery. The company has
stock to a policy of no lay-
offs throughout the recession
and says that despite its year-
end results, no lay-offs are
now planned. “In fact we
are hiring people,* said the
company.

Orders for semi-conductor
components have increased
by about 15 per cent since
March, according to the com-
pany. Bat much of the
improved business is due to
stock replacement by com-
ponent distributors.

The company expects a
slow but steady recovery in
business through 1983.

crease since last summer.

The “technical correction”
means that dealers who had
sold off too large a portion of
their inventories began 'restock-

Ld ^Tfive*^ con-

their inventories began 'restock- for. Sumitomo Heavy Industries jjJ ne g| to -tiie Jtitiiatt 'grbmj' si
ing slightly and this encour- by Swiss Bank Corporation- The to; ^nsoiiaaS^ihe

aged others to lift their prices, coupon is 6* per cent and the. ^

There were reports through- conversion premium 5.02 per affa ^ rfc r~.

"if (he Midi Miwtri.rattKt
^w^said to he ebie. £

“The torestois ££ ■

Ming ,t a few enttity .iaaue; W® W(h i gnmp of togs

wmg at a rew quniiiy V' » TSfVtbn HmeimH

whtah provide attractive yields,” headed, by^ Paeison, H^dnng
explained one trader. Pierson. The ;cnupon.is 114 per:

The jumbo $7 50m Canada cent. - V- . - : The. agreement^ is;due:to Se

issue recovered i point to close • The Swiss National. Bank is txjmpIetedmJthe'jaeaftew.djjys. t
at 961, providiog-a yield of 15i moving to ease certam capital & Majui . 'and ,lus. associates will !
per' cent. But the six-month export rules, Reuter reports also; -increase their, stake. ; in- ,
Eurodollar deposit rate is soli from Zuriehl Tbe bank le lifting InqpR-esitSideco^ the-local ^arm
above 16 per cent and investors - restrictions on secondary markets :of- j . ylmpresif - Ffaft r “civil
are reportedly still inclined -trading of mediuin-tenn notes engiheefing stfhsiiBaiy. . -Sevel
to shift funds into short-term for private- placement— ^these wiH continue to -assemble and
deposits (one to three months) wOl be free <rf constraints and sell Fiat. axwL Peugeot -cars,
rather than bonds. may now be traded. de^nte _ the ■ chan g e,.in qwn er.

Lockheed to pay Khsshoggi

de^ufe^ the -change,.. in - owner-
ship.;-. c : ;Z .

. Flat -said . last night timt its
other 7 opera tfons in 'iAtgeritina,
,-inchjdittg . tractors,- . ; heavy
vehicles '..and telectaamunica-
tionSj' wMild -ridt be affected by

By Our Rnanrial Staff

A SHARP recovery has been
staged by General Tire and
Rubber, the fifth largest U.S.
tyre manufacturer. Second

U.S. STEEL, the largest U.S. made by U.S. car makers. Last was 224,000, compared
steel producer, is to cut the week. Bethlehem Steel, the 403.000 in April last year,
salaries and benefits of all its country’s second largest steel . ... .

27,000 white collar workers producer, said it was cutting steel - fifth largest

* 4 1 lUUU n'LULb (.uuul |#awwi«vvi | gMtii il *« h j . —

from next month in a move to the salaries of about 250 J£”L”. ce *’ “P et J® Jn 2 ir

reduce company costs and win executives.

quarter profits total $29 .9m or labour costs concessions from
$1.27 a share, compared with its blue collar workers. The

a higher operating loss in the
second quarter than the $89.3m

$22.7m or 92 cents a share for

labour costs concessions from u.S. Steel and other major iosV of fiWrTaffi anartfir
its blue collar workers. The domestic producers are also try- a^rdingto Mr WUiaiS L^De
srsrz. ““ % S? Lancey^haliman.

Rising costs
bit profits at
Data General

BY OUR NEWYORK STAFF tions,Wuld-ri{>t beaffteted by

LOCKHEED, the defence and tiiat aboiit $38m inqu^StfozuAlA tha.deaL ;

aerospace group, will pay an un- payments had 'been made-in the ; : .•

disclosed sum to Mr Adnan eaily 70s:; It ended its 16-year J>po*»nwinVc
Khashoggi. the Arah business- relationship with Mr IQiashoggi ftiJatauraui* sue
man and former Saudi Arabian last year. . He was paid $106m -Quaker { Oats has entered Into
commission agent for the com- in . commission fees -between .^ agreement to sell most of
pany following an award by an 1970 and 1975, but payments the .assets of its. -Magic: Pan
arbitration tribunal- ' in his were wrtbfaeld after the ^candaL restaurant-- division . to private
favour. The company's 1981 • annual investors, - Reuter- reports from

Mr Khashoggi had filed claims report published last April, Chicago. The company said 89
for substantial commission and said these commissions were not .of -the 90 Magic Pan units are
damages from Lockheed, which paid “due to, among -other included in the sale,
had withheld commission pay- reasons, substantial uncer- The sale will result -in a

ment involving varioas contracts tainty as to the permissibility of special charge of abbot: $1.05

with Saudi Arabia.

By Richard Lambert in New York He was one of Lockheed’s Saudi Arabian law.”

such payments under -UJ5.. and a. share: against fourth; quarter

fourth

the corresponding period of salaries of all its management the three-year labour contract

1981.

The group is still in the red,
however. At the half-year stage
there is a net loss of $4.7m.

ranks would be cut by 5 per with the United Steelwork ere The net loss for the first

cent and cost of living adjust- Union. The contract, covering quarter of 1982 was $28.5 m. The

ments would be frozen.

some 250,000 steelworkers, ex- second quarter of 1981 brought

The company has already pires in August 1983. But tbe & profit of $43m or $2.67 a

equal to 20 cents a share, against warned that it may only break steel companies want to follow share.

a profit of $24.8m or $1.00 a even in the second quarter this the example of the motor indus- Mr De La ncey 5343 Republic’s

share last year. year despite earn)

Sales of the group, which by its acquisition
derives the greater part of its Oil last November,
income from non-tyre activities The pay and ber
such as aerospace and defence among the most sweeping made

year despite earnings inflated try which seemed concessions order backlog was at a record
by its acquisition of Marathon from the United Ante Workers’ tovv and that ^ ^

Oil last November. Union by renegotiating con- been forced to drastically re-

The pay and benefit cuts are traots before they expired. duce operations. Work at some

d0ts DeiOTe “ey -expired. duce operations. Work at some

The latest figures of the units had been suspended in-

products and plastics, eased in by a large U.S. corporation. American Iron and Steel Insti- definitely. Over 13,000 Republic
the half-year from $1.06bn to Similar cuts in management tute show that the average mun- workers were laid off or on a

S1.04bn.

salaries and benefits have been her of hourly workers in April short week.

DATA' GENERAL, once one
of the fastest growing and
most aggressive of the mini-
computer manufacturers,
suffered a sharp drop in pro-
fits during the third quarter
to June. Earnings were $3J>m. .
or 32 cents a share, compared
with $9.7m, or 91 cents a
share, last year, on sales up
from S140.1m to S14Mm.

The company said that pro-
fit margins had been squeezed
by Increased costs, coupled
with slower orders and ship-
ment levels resulting from
sluggist economic conditions
around the world. Sales rose
slightly due to the consolida-
tion of a Japanese subsidiary,
but on a comparable basis,
sales were a 'little lower in
the period.

Data General posted an
earnings increase in the first

consultants in the years -when Lockheed said Mr KhasHoggi's quarter earnings equalled $1.52
the company was charged with settlement will not have, any . a- share: Fiscal 1982 sales of the
making questionable payments material impact on earnings restaurants -were estimated at
to promote sales. because reserves set aside last $77 m, or about 2 per- cent of

to promote sales.

Lockheed disclosed in 1977 year would cover it.,: - ..

Quaker's total sales.

FT INTERNATIONAL BOND SERVICE

The list shows tbe 200 /latest international bond issues for which an adequate secondary market
exists. For further details of these or other bonds see the complete list of Eurobond prices which

will be published next on Tuesday July 13.;

dosing pieces on June- 22

/V.

by Increased costs, coupled
with slower orders and ship- US.7 L t5 l5 86/97

ment levels resulting from Amax int. Fin: is*. 92 75

sluggist economic conditions An, w o/s Rn. i4*« as 75

around the world. Sales rose ra' 1B *‘ " «oo

slightly due to the cousolida- Baker i„t. Rn.' o.b ’sz 22 s

tfon of a Japanese subsidiary, bkp Finance i4\ 89 ... iso

but on a comparable basis, gj- £ 87 So

sales were a little lower in Bque Tndo sIS S re too

the period. Briiiah Col. Hyd. 14% 89 200

Data General posted an Burroughs int. itn, 88 so

earnings increase in the first gn'diJn KS. ^“sa ’S

quarter of the current finan- Carolina Power 16S 89 so
dal year, but since then its cjic ie 87 ;... 100

performance l)as deteriorated
rapidly.

After nine months, its net
income (before extraordinary
gams of $4.8m against $9.8m)
is down from S27^m or 52.55
a share, to $19^m or $L79 a
share. Sales were $428m
against $394m previously. 'Hie
share price has fallen to
roughly half its 12-month
peak.

The company was restruc-
tured last year, and Its sales
and servicing activities were
revamped. Several senior exe-
cutives have resigned in the
last 12 months.

Mr Edson de Castro, presi-
dent, said -yesterday: “We
continue to be very encour-
aged about the company’s
long term prospects.” He said
that at the end of the latest
quarter the company had be-
gun shipping two new models
ahead of sdieduJe, and had
also introduced a series of
commercial products based on
a new microprocessor.

CIBC 18 87 :... 100

Citicorp O/S 15 84/92 100

Citicorp O/S 85/97 125

CNA IF* 97 75

Con. Illinois 15V 89 ... !100
Duka Pwr. O/S 15*, 89 60

Dunam O/S Cap. 0 O 90 300

ECSC 14* 87 50

EIS 15*r 89 160

Ek&portfinans 14*, 89 ... GO

Change on

Usuod Bid Ofler day woak YMd
150 98 98*, -fP, -2*. T5.68

75 961. 97V -HR, -Z\ 16.85

75 83* 4 93*4 tr —2' 16A4'

75 9SH 53 —0*i -<1*» IB^O

400 99 99*,-0*,-1\14J9

225 124*. 24% -O*, -1*. 15.71

150 33% 9«% +0% -2% 16.20

200 88% 88% —0% —.1% 15.53

100 94% 95*4 +0% -2% 1602

100' 93% 94 +0% -2% 16.58

200 94% 95% +0% -3% IB-94

50 98% 99 +0%-1% 16.04

160 96% 98% 0 — 1% IB JO

75 93% 93% +0% “2% 15.93

60 98% 9B\ +0% -2% 16.85

100 98% 99% +0% -1% 16.20 :

100 97% 98% -0% -1% 16.16-

125 08% 89% -0% -1% 15J3 -

75 95% 95% —0% —3% -16.64

TOO 98% 99 -0% -1% 16.00
60 95% 95% +0% —2% 16.57

300 32% 33 — 0% — 2 15.74

•. - Ciwnge on

OTHER STRAIGHTS ■ , taiMd BM Offer day weak Yfeld
Boll Canada 16 89 C$... MO t95% 96 -rO% -rO% 17.01

Can. Rac. S. 16% 89 CS : 50 f96% 97 -0% -2 -17.17

Crd. Fonciof 17% 68 CS 30' t98% 99 -0%-0% .TM1

Hudaon Bay 17 89 C$._ 40 195% 96. -rt% -r3!- 18.03

Can. 1>ae. S. 16*. 89 CS? 50
Crd. Fonder 17% 88 CS 30
Hudaon Bay 17 89 CS— 40

OKB 15% 88 CS 63:

Q. Hyd. 16% 89 (MyJ CS 50
Quaboc Pfov. 16% 89 tS-. 50
U. Bkr. NWy. 9% 90 EUA 18

136*, 97 -0% -2 -1717 ;
198% 99 -0% -fPi 1741
135% 96. -1% -r3:-moa .
194%. 95 -0% ~D%17.74 •
198% 99- -0% i-0%lB.79 ’
138 -88%:-0% -O%1698 .
89% 90%-

Amro Bank 10 87 R „. 150 " 98% 89 ; 0 "-*- 0 % 10 J 6
Bk. Mau a H. 10 87 FI 76 . 98% 98% 0 . -Wv'TOJB
Eurofima 10%89 FI .50 99% l00*i t0% -0% TOM

50

95

85%

+0%

- 2 %

18.19

150

97%

97%

+0%

- 1 %

16.11

50

92%

S3

+0%

- 3 %

16J0

400

25%

25%

+oy

- 1 %

15.15

400

22

22%

+ 0 %

-z

15.15

125

94

94%

+ 0 %

- 2 %

15.39 _

150

97%

96%

+ 0 %

-2%

1GM •

100

96%

97%

- 0 %

-1%

16J9

GMAC O/S Fin. 15 89 125
GMAC O/S Fin. 15 87 100
Gulf Canada Ltd 14% 92 MO

Guif Oil 14% 94 175

Gulf Oil Rn. 0.0 92 ... 300
Gulf S taros O/S 16 90 60

Int-Am. Dv. Bk. 15% 87 SS
Japan Dav. Bk. 15% 87 50

Naw Brunswick 16% 89 75

Ontario Hydro 14% 89... 150
Pec. Gas a a. 15% 89 45

J. C. Penney Gl. 0.0 94 350
Phillips Petrol 14 89 200

R.J. Rynlda. O/S 0.0 92 400

Saskatchewan 16 89

Shall Canada 14% 92 ... 12S

Xerox upgrades
computer for
office networks

Spain 15% 87 100

Superior O/S Fin. 14 89 IS
Swed. Exp. Cr. 15*4 89 100
Swed. Exp. Cr. 14% SO TOO
Swad. Exp. Cr. 0.0 94 200
Texas Eastern 15% 89... 60

Union Cortaida 14% 89 150
Wells Fargo I. F. 15 87 75

World Bank 15% 88 ... 250
World Bank 14% 87 ... 500

94% 95 -0% -1% UL3D
96% 97 +0% -0% 15.87.
93% 94% +0% -3% 15.94
95% 96% 0-2. 14-96 .

24% 25% O — 1% 15.31 -
96% 95% -0% -2 17.01
94% 95% +0% -2% 18.49
100% 100*4 +0% -1% 15.28
97% 9B% -0% -3 16.70
96% 95% +0% -3% 1531
98% 98% 4-0% —2% 15.80
18% 19% +0% r-1% 15.32
92% .93% -p% -1% 15.74
24% 25% -0% -1% 1540
98% 89 -0% -2% 16.20
93% 94% +0% -3% 1SSB
98% 99% +0% -0% 16.00
91% 92% +0% -2% 16.01
97% 98% +0»« -0% 15.70
93% 93% +0% -2 16.25
18 18% +0% -1% 15.62

99% 99% +0% +0% 15.83
94% 95% -0% -3% 15.97
86*i 97 W, -15 15.96
96% 97% +0% -2% 16 JO
93% 94% +0% -2 16.12

Ireland 10% 87 R : 75

Phil. Lamps 10% 87 FL.. 100
World Baltic 10 87 FI ... 150.

OKB 14 8B Ffr i...... 400

Solway et C. 14% 88 FFr 200

A cans 14 85. C 20

Beneficial 14% 90 £ (D> 20

BNP 13% 91 .w .15

CBCA 13% 88 .2 20

Fin. Ex. Cred. 13% 88 C 15
Gan. 0ec. Qo. 12% 89 E 50
Hiram Walker 14% 88 £ 2S
Privatbankan 14% 88 £ - 12

Que.bec .15% 87 £ 35 '

Read £Nd) NV 16% 89 £ . .25
. Royal Xruatco 14 88 £... , 12
-SDR France 15% ffi t„ 30
Swed. Ex. Cr. 13% 88 £■ 20

99% 100*17- 0% j

87% 98% -0% -0% 11.00
98% K» O ^0% 1030
97 % 98 . - 0-. -0% 10; 60
S3 94 ' P — 0% 1BA1
- S2% 93% - 0. ’ 0 .17-42
95% 98*4 “ 0 ,--0*,15J9
89% - 90% -HPit -0% 10.52 .
. 93% -0% -1 . 14JZ

94 95 +0% -1% 14.84 |

85»« 96% 0 -0%.15J»
91% 92V -0% -0% 14.40 •
97% 98% +0% — 0% 1497
94% 95% 0 +0% 15m

KHVJ02% 4-0% -0%14JT
103% 104% *0% -0% 15.74 :
87% 98% -0 . -.0%14.71.'.
99% 99% +0%' -0% 15 JSB
98*. 97% 0“— 1 . 14.83

Eurofiipa 10% 87 LuacFr 500 95% 88% -0%‘|1.61

EJB 9% 88 LuxFr

-0% 1192

R.OATING RATE
NOTES

Allied Irish 5% 92

Spread Bid Offer C.dtr-C.ppn C.yfd

88% 18/10 15te 15.87

Bk. of Tokyo 5% 91 fDj 0% 98% 89 8/12 15% 15-44
Bk. Nowa ScoUe 5% 33 0% 98% 99% 29/10 15% .1590

W <Pi 98% 99% 28/10- 1.5 18.17

5%„87.. -- 0% 99% 99% 27/7 T8% 15 J3

BNP 5*« 89 WW 0*4 98% 98% 8/11 15.19 1BL40

Cakese Nat. Tela. 5*4 90 CP»- 99 .99% 21/10 T5% 15.87

CCCE 5% 2002 0%

CEPME 5% 92 - .0%

Chemical NY 5% 94- ... 0%
Cent nil note 5% 94 0%

0% 98% '98% 11/12 15% 15.81

0% 98% 99*4 10/12 15.44 15^9

0% 89 99% 23/6 0% 5J9
0% S SB% 99% 24/6 5% . 5.30

Cradfl Agricoln 5% 97 ; -0% 98». 99% 24/9 15*4 1557

Credit du Herd 5*j 92 0% . 98 1 * '.99% 23/6 5% 8Jf

Credit Lyonnais 5% 97... 0% 98 % 99 % i/^ 0 n _M.14
Credit Net. 5% 94 10 % 98% 98% 9/9 14.69 14^1

Dwmart^ Knqdm of 92 0*» W9 59% 2S/8 15^44 15-57
£***"?, 2!" tS8% 98% 25/11' 14V- 14J7

KanraHic 5% 92 0*. 98*, 99 6/TI 15^1 1551

Averape price changes... On day 0 on weak —1%

DEUTSCHE MARK
STRAIGHTS

MancnieS^k

By Our San Francisco
-Correspondent

Hie largest private bank in Chile is pleased
to announce the opening of its first
international branch, office in New York at:

124 East 55th Street
New York, New York 10022

John M. Bartholomew
General Manager
Telephone: 212 758-0909

Telex: ITT426611
TRT 177141
- WUD 968462

XEROX, THE UjS. copier and
office equipment manufac-
turer, has introduced the first
personal computer purpose
designed to fit on to local area :
networks — strings of inter-
connected computers in an
. office complex The company
announced Its 820/n in Kan- -
sas City yesterday.

The Xerox machine Is de-
signed to be used on an
Ethernet network — the net-
work standard that has been
jointly formulated by Xerox
Digital Equipment Corpora-
tion (DEC) and InteL It te -
. aimed at the office profes-
sional market which is worth
- $6Abn a year and Is expected
to grow to over $25ba by
1987.

The Xerox machine is based
upon an eight-bit micropro-
cessor, unlike many of the
newest professional work
stations which have more
powerful 16-bit microproces-
sors. The 820/n will, how-
ever, compete directly with
the Apple IIL . Apple Com-
puter's more expensive high
performance machine.

The 820/II is basically an
upgrade of Xerox's first per-
sonal computer, the 820. It
offers higher speeds and more
storage capacity than its pre-
decessor for the same price,
and can be expanded to in- i
corporate up to 10 mega- j
bytes of data storage capacity. |

Aslan Dev. Bank S% 92 150

Auetrelia 9% 91 300

Australia 8% 91 200

Austria 8% 92 100

Barclays O/S In. 8% 94 TOO

Canada 8% 89 200

Como. Tel. Eap. 10% 92 100
Cred. FoneJar 8%. 92 ... 100

Denmark 10 88 100

Denmark 10% 92 100

EDF 9% 92 100

.EEC 9% 94 / 200

EIB 8% 92 100

Int.-Am. Dev. Bk. 9 92 150 *

Ireland 10% 86 TOO

Nacnl. Financljare 11 90 ISO.
Philip Morris 8% 90 100'

Quebec 10% 92 150-

Renfe 10 92 ' 100

SNCT 9% 92 100

Tauernautobelm 9% 94” 50

World Barfk 9% 89 100

World Bank 8% 92 200

Change on

Issued Bid Offer day week Yield

LJoyds Euroftn B% 93 -v 50% 98% 99 % 29/10 17 % . 1728

• lung Term Cred. 5% 92 0% 98% 98% 29/11 14% -. 14*7

98*4 99% 12/8 14% . ^4.79 -

Hat, WexL.Fh,. S% 9T... 50% 99% 90% 16/7 15.19 15^8

New Zealand 5%_87 ...... 0% 39 99 % 7/10 15 JB 15.68

SfiP? 4 ?" C . r ? dl . t 5*4 90..; 0% 99 ', 99% 10/8 16.06. 16.18

98% 99 +0% — 0% 9^46
101% 102% — 0% -0% 9.00
101% 102% -0% -0% 9X0
93% 94% +0% +0% 9X4
. 94. -94% +0% -1 9.18

100% 100% +0% +0% 8X7 r
99*. 100% 0 0 10.48

95% 95% +0% — 0% " 9 M
100% un% +0% +0% 9.74
101 % 102 % + 0 % + 0 % 9 : 74 .-

99% 100% 0 -0*. 9M

100% 101% O -1%. 9.80

93% 94% + 0 % - 1 % ajax.
97% 97% .0. —1% 9X9
100% 101% — 0% “0% 9X8
96% 96% +0% .-1% 11.71:
99% 99% +0% 0 8X1

ItriYIOSPi - 0*4 - 1 % 9 X 2
S7% 98% “0% -5% 10X0
94% 94V +0% +0% 9.52
101 101% O -0% 9.68
100%10F1% “0% -1% 9J6
93% 94% +0% — 1% IU3

Offshore Mining B% 91 0% S8% 99%

PKbankqn 5. 91

»« 98T, 99% 17/12' 15X1 -15X5

-2* 83 23/9 15% T5X7

Sec. .Pacific 5% 91

SocreM General* 6% 95 0 %

98% 99% 24/1115 15.15

59 99%. 1/9 15.31 18.43

Standard Chart .5% .91 - 0% . 98% as 18/11 14% 16.06

-Sweden -5% 89 0%

99% 26n" 15X1 . 15 A3

Tororrio Doirun-n^^, 92 0%. 98% 99% 11/8 16%. " 16X2
' Awerag# price cherigea... On dayo m week v-0%

83% 84% .-f-T, 0X2
84-86 +2% 9£4fl

* .97% +0%. -8.62
79% 81V +2% -m5S

Average price changes... On day -HP, on week —0%

SWISS FRANC
STRAIGHTS .

Air Canada 6% 82 100

Aslan Dev. Bank 7 92... 100

Aucalsa 7% 92 80

.'Australia 6% 94 100

Cse. Noi. TEnorgla 7 92 100

CFE- Mexico 8% 92 50

Co-op. Denmark 8% 92 25

Crown Zartlreh. 6% 92 100

Euraparat 7% 92 100

Ind. Fund Finland 8% 92 30

. Japan Dav Sank 6 84... 100

Kobe; City 6% 92 100

Kommuniana 7% 92 ... 35'
Mitsui OSK 6% 92 100

National Pwr. Co. 8 92 30

Naw Zealand 6 92 100

OKB 7% 32 MO

.Ost Po* taper 7% 92 ... 100
Philip Mcrrfa 8% 92 ... 100
Philip Morris 6% 94 ... WO

Quebec 7% 92 100

Sfklsul Pro. 5% 92 WW 80

Ronfe 7% 92 70-

Sac. Lux. de Cnt. 8% 92 80
Tlroler Wesser 6% 92 100
Vorartberp Krali 6% 82 50

Change on

issued Bid ' QSer. day week Yield

89% 99% +0% -1% 122
89% 100% +0% -0% 7JDO
95% 96 HP, -1% 8.40
101% 102 4-0% -2% 928
-99% 99% +1% *-2 7.03

97% -0% -^1% 8.71
7(0-103% -0% -2 JM
98 . 98% 0-3 7.02

100 100% 4-0% — T% 7^3
97% 97% -0% -1 7.07

97} 87% 0 0 829

88 *i 33% +0% -1% 621
99% 95% +0% -1% 724
98% 38% -0% -2% 6.75
im% 101% -OV-1% 7.78
.99% 88% +0% +0% 629
103% .103% +2 -0% 721
1(K% 101% +0% -2 723

101% 101% +0% -2 BM
99% 100% 4-0% -7% 62S
+1 0% 823

38% 88. +0% — -0% 722
102 102% +0% -2% 5A5
105% 108 — 0% — 0% 7.14
36% 97 -+0%-f-0V 6^9
102 102% 4*1% HK, 625

-J99% .70% : *t%iZ22Z- ; .
' 60 ' 8Z -0»j:-1727. ”
84 SS% -3%.: . 0J&

: 84% 88 "+3 172? ■

Average price changes,.. On day +0% on week -1%

Change on

YEN STRAIGHTS lesuod Bid Offer day week Yield

EIB 8% 92 15 86% 97*, -0% -0% 8.7J

Inl.-Amer. Dev. 8% 91 15 101 102 0 — 0>« 8.62

Japan Airlines 7% 87... 9 85% 98*, +0% -0% 824

Now Zealand B% 87 ... IS 99 IW +0% — 0% 820

World Bank 8% .92 20 98%r. 88%. 0. 0 826

Average price changes... pn dap -0% on week -0%

COWBRTIBtE. &W. QW. . - Cbg. -

BW Offer' day- .Prani
Aitaomotp 5% 96 7 /B 1 333 80%: B 1 % H-1V i7t'

.Bow Valfey fey. 8 9S ... 4/8123,12.,'.'- 3F% S 3 1 , + 0 % *72,78 .
Bndgeston.e Tire 5% 96 3/82 470 83% 84% .-FI*, t > XL

Canon ff»« 85 • 1/81 829 84- 86 +2%

.. Chug., £harm 7% to ... T/SZ 309.6 . . M 37% +£ -?£ ,
Fujitsu. Fanoc «, ,96^.. .. 10/81 £641 79 % 81 % +2% - 16 ^

Purirfcawe Elec. 5> 86... 7/B 1 30 0. 3Z B 3 %— ©%

Hanson JO/S . Fin. 9% 9S S/81 i4fi ISO B* ^2 U13L28

HlWChi Ctblfl 5^i-86..^,. 2/62 '515 “ & 4 J. ftgjL xiL •• c ja

H^schf Cf«L Cpn. & 7/ai 1BJ2. \ M 76» 4 4-tt‘:’ c 7nS : "■

Honda Maior 5% S7„ — 3/8? 841 61% 82% 4-2%-. -4.49

f56V 58% +1% 39jri .

S^5S* 5 Ba6.4 S3 S5 +1^ ■ 2 e!s6

■ JS -S'-

Nippon Bectuc 5% 37... 2/82. 840 34 ' as% — 02Z-

San« f*? 72D& » w +3 A1J9S

issrs EK'S* «"-^ s77:3 •.

Cpn, B% 90.. . 9/80 r i8i 71%

.Komejiiroka 8 90 DM ... 2/82 £85 700% 101% + 1 % "706
- Mitsubishi H. 8 89 DM.S?2 ' 263 +£-^5..’.

* Wo ipforrnaUon mi la We— previous day's ptlcU,

1 j g 12 nMc *tvt njaker supplied s ppea'. ’ -

17,8 y ^ rf . te > told to redamptoo’of rtir -

iMuadfa in mlilioru ’ol .'currency ..
6ond< It to- in- bllttorw*- *

niTwtal? HIS. k ”S h6na8 . xtwar ■ wwk eorifer'.; r

-I* 1 ‘doJfere.ufttesr t«hW^ .
jn .“*cstod. Coupon shown IsJtUnfmum. C,«U«— rjft* v -
.•^•^a.'SjHwcr-Maram >bo«r."
X^rw-roonthi ^nasp;

t,0 . Ui »- Tcpn“The eurreni co.updh.^
C.yld=Hie«urrtni yield. • .

Conue mbla 8ftnd»:_Deodmin stud In dollar* im roM^! other- .

' • ' Oip. day - Change on day. ..CflV.' A&* ' .

I to* conversion.' mto shares*. 1 Qp% , 'prteife , '‘, * •’

• Jfemtnar amount : of . band 7 per share expressed' ft
cunwqr of share at conversion .rata fixed st'.fesud. r ‘ ;
Prem-* Percentage premium of tho current effective pdoe^.U
aharea efe Ussbood over the -most raceat ' .
price of tee shares, • •

S ‘•to; 1982. Bopreduction hHWfibto .‘r • '

or in pen irt any form nor permitted without-" writterf ' "
consent. Date auppCed by .DATASTOEAMlnaKnstto^^ . '

It

ta kei

ar %

?I Co %

■■--■ :. >PU J t ■

T* -£2* tip.

■ - "IS .*5,

■■■■■■ •: •:. ••is

r h h . '

- ' ■-,?£

. • • •-rfj'll

• ta • (.» j fc-

' 4 V .

y •"■ -r- j,:^; .

' ■

• • i •

.'. ' :

:

< - -:'f?*. . •

Grants safe

1 V ^ -

"'1 'ffl J;

.‘: r * : V

. • ••'•a

w >T :.
- : -*« ■■

• I r-^.

• •••■

r-

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; 1 . •(

.: - i :.

Denmark’s best-known brewer plans to extend its foreign connections

Tuborg group’s Far Eastern brew

UNITED BREWERIES, tbe
Danish brewer best known for
its Carlsberg and Tuborg
brands, remains keen to expand
its network of foreign
breweries and licensing agree*
merits.

Just back from a trip to the
Far East, Mr Poul Svanholzn.
tbe group president, said OB
wants to start some new
brewery projects to supplement
those in Hong Kong and
Malaysia. He cited Singapore
. as a possibility. Having recently
agreed to provide technical
know-how to the Guangzhou
Brewery of Canton, the com-
pany hopes to reach another
assistance agreement with
China but " this isn’t anything
you can do overnight”

UB recently signed licensing
agreements for the production
of Carlsberg beer in the
Dominican Republic and for the
production of Tuborg beer in
Puerto Rico. Licence royalties
are an important source of
earnings for the company. Tbe
company also plans to increase
the capacity of its new Carls-
berg brewery in Hong Kong and
of a Tuborg brewery in Turkey.

Tbe brewer had an ann ual
turnover, excluding excise
taxes, of DRr 5.4bn ($630m)
last year. About 52 per cent of
sales are generated from pro-
duction in Denmark, 25 per -
cent from production abroad
and 25 per cent from non-

Norwegian
shipping group
moves ahead

brewezy activities. Income from
exports and licence royalties is
estimated to account for about
50 to 60 per cent of group
profits.

Up until the late 1960s; Carls-
berg and Tuborg — which
merged in -3970 — covered all
their foreign markets by ex-
porting bottled beer from
Denmark. This proved to be
a costly procedure with rising
international freight rates and
distribution problems.

Their merger coincided with
a shift In strategy. Foreign
markets now are covered by a
combination of exports, licens-
ing agreements and production
in local breweries In which UB
has a controlling interest. -

Today UB employs a mixed
sales and distribution strategy.
In the U.S.. for example,
Tuborg Is produced under
licence by Heileman Brewing
of Wisconsin while Carlsberg is
exported from Denmark. The
reverse strategy applies on tbe
Canadian market “If there Is
any status connected with be-
ing an import, then one of our
brands can benefit”

Unlike Heineken of Holland,
UB's penetration of the U.S-
market is slight although 14 we
expect a strong growth on the
American market." More im-
portant to the Danish brewer
is the UK. where Carlsberg has
staked out a firm position in
the growing market for lager-

UBV RECENT PERFORMANCE

Sales

Net profit

•

DKr

DKr

W7

&3bn

113m

1*78

3.7bn

143m

1919

4.1 bn

158m

i no

n

176m

vm

SAbn

212m

* Financial year to September.

type beer. Lager now accounts
for more than 50 per cent of
the UK beer market and “we
are one of the biggest. ”

UB, along with other Euro-
pean brewers, is attracted by
tbe potential for beer sales
among the traditionally wine-
drinMng countries of - tbe
Mediterranean, It has seen
strong Increases in sales in
Portugal and Italy, where both
Carlsberg and Tuborg are
brewed under license.

UB’s technical agreement
with the Guangzhou Brewery in
Canton involves the sale of
knowhow through a subsidiary,
Danbrew Consult. Danbrew is
helping the Chinese renovate
their brewery and is training its
staff, taking some to the new
Carlsberg facility in Hong Kong.

The founder of Carlsberg,
X C. Jacobsen, also established
the Carlsberg Laboratory, an In-
stitution dedicated to basic

AEG races against time
to avoid liquidity crisis

, ■

' - £:• ;•

" ’ . ;

By Fay GJester in Oslo

THE. BERGEN shipping group
Kristian Jebsen, reports oper-
ating .profits, after depreciation,
of NKr 117m ($18.6m) for
1981, up NKr 10m on a year'
earlier. After financial and ex-
traordinary items, net profits
emerge at NKr 268.1m, com-
pared with NKr 88.1m.

Part of the increase repre-
sented profits on ship and
share sales, inducting the sale
to British investors last year of
a 49 per cent stake in Jebsen’s
UK offshore drilling operation.
This year profits are expected
to be "significantly lower,” re-
flecting the weakness of the
freight market and fewer ex-
traordinary credits.

The Jebsen group, including
-minority interests and activities
owned by outside partners, in-
creased gross turnover last year
to NKr 2bn from NKr I.fibn.
The group employs 1,800 and
owns , and operates 60 bulk car-
riers. It has 14 more on order.
It also has a number of vessels
on charter. ,

Through its drilling offshoot,
Jebsen's Drilling, the group
operates three drilling rigs
and a drill ship, all of which
have been chartered out for
several years at profitable rates.

In partnership with Elk cm,
the Norwegian metals and
manufacturing concern, Jebsen
last year purchased several
ferro alloys plants In Norway,
the U.S. and Canada from
Union Carbide of the U.S1

The subsidiary, Jebsen Metal,
yielded “ poor ” results in 1981
and similar, weak results are
; expected this year.

BY KEVIN DONE IN WEST BERLIN

TIME is running out for AEG- !K?
Telef unken if it is to stave off
a looming liquidity crisis in
coming weeks as well as over-
come its long-term structural
shortcomings.

Herr Heinz DQrr, executive
chairman of the troubled West
German, electrical group, said
yesterday: 44 A solution must be
reached before tbe operating
units are weakened and the -V
group’s firtarifling endangered.” «
General Electric of the UK
had 44 a concrete interest in co-
operating with AEG-Technik,”
he said. “We have conducted
detailed talks with GEC
although there is not yet a
written agreement It is certain,
however, that 'utider no circum-
stances would GEC take a hold-
ing of more than 40 per emit”

Herr Dttrr also revealed that
the group had applied for loan
guarantees totalling DM 550m
( 5222m) from four provincial
states, Bavaria. Berlin, Lower .
Saxony and Hesse— DM 150m TI
more than indicated by the worJ
company last week. The group by 4
is also seeking loan guarantees Wes
totalling DM lbn from Bonn. to 4
While the AEG management Tl
was still aiming to save its futu
capital goods and household imp
appliances operations, Herr shai
Dttrr made it dear that the asl(
group hoped largely to dispose and-
. of the heavily loss-making Tele- paid
funken consumer electronics ing
division (televisions, radios, capi
stereos and video recorders), A
retaining only a minorily the '
Interest. Most of Telefunken’s in V
foreign-based operations — - It hou:
manufactures in Brazil, Mexico, wou
Italy and Spain— would be shed, befc

H err Heinz Durr

The Telefunk en workforce
worldwide has already been cut
by 45 per cent to 9,500 and in
West Germany- by 60 per. cent
to 4,600 in the last five years.

The uncertainty of AEG’s
future has had a dramatic
impact this week on the group’s
share price, which has fallen to
as low as DM 27 per share. Two-
and-a-half years ago the banks
paid DM 150. per share in pump-
ing in DM 950m in new equity
capital.

AEG told shareholders that
the worsening consumer dimate
in West Germany meant that its
household appliances division
would be unlikely to break even
before 1984.

Kvaemer expects higher profits

BY OUR OSLO CORRESPONDENT

KVAERNER. the Norwegian
heavy engineering, consultancy,
ship and rig building group with
interests in gas tanker shipping,
forecasts higher profits this year
than the NKr 176.8m ($2Sm)
pre-tax earnings achieved in
1981. It reports a pre-tax profit
of NKr 60m in the first four
months of 1982 on turnover of
NKr L4bn, compared . with
NKr 35m on sales of NKr 950m

in the same period last year.

Turnover for the whole of this
year is expected to exceed
NKr 4bn, compared with
NKr 3.73bn In 198L

Orders boobed during
January-April 1982 totalled
NKr 1.05 bn,- considerably less
than the NKr S.3Sbn boobed in
the same period last year. But
last year’s figure included

orders worth NKr 2.3bn in con-
nection with tiie third produc-
tion platform for the Anglo-
Norwegian Staff jord field.

Orders on hand at end-April
this year were worth NKr -L32bn
against NKr 4.77bn a year
earlier. Some of the group com-
panies reported Shrinking
orders, reflecting the shipping
recession and market develop-
ments generally. -

itemnounaamamswamMBiamrinmidortt

Jane. JS82

research and to the technology
of brewing, later transformed
into the Carlsberg Research
Centre. The institute employs
about 150 staff and works on
problems such as bottling tech-
nology and enzymatic engineer-
ing.

Ttiis scientific influence is also
reflected in the direction of the
company: UB's majority share-
holder is the Carlsberg Founda-
tion. another institute created
by Jacobsen.

Tbe Carlsberg Foundation
holds about 51.3 per cent of
UB’s stock.- About 11 per cent
is held by a large Danish pen-
sion fund, about 30 per cent by
the Tuborg Foundation and tbe
rest is public and quoted on the
Copenhagen Stock Exchange.

In addition to its inter-
national expansion plans, UB is
undertaking about DKr lbn in
capital spending over the next
five years to update its Danish
plants. The rationalisation mea-
sures also are designed to con-
trol costs, which “ have in-
creased significantly in Den-
mark.”

Investment this year is ex-
pected to amount to about
DKr 500m. up 17 per cent from
'1980-82. Mr Svanholm does not
see any difficulties in financing
this. Apart from a convertible
bond -issue to shareholders, UB
.has not needed to raise outside
capitol in recent years.

AP-DJ

BMW to keep
British
prices steady

By Kenneth Gooding,

Motor Industry Correspondent

BMW would not be able to
pnt up its car prices in
Britain for some time because
of the pressures arising from
unofficial imports from the
Continent, Mr Hermann
Mund, head of corporate
finance, said in London yester-
day. ,

He indicated that manufac-
turers would attempt to bring
UK prices mere into line with
those on the Continent, where
for the past two years or so
they have been well below
the British level.

The recent realignment of
European currencies, involv-
ing some of BMW’s most
Important markets, should not
have too much of an impact
on the group, Mr Mund
suggested.

The Italian depreciation
was only of 2} per cent. *“ so
it is no problem,” while in
France he believed BMW was
fit a strong enough position
to raise its prices to compen-
sate to some extent for the
depreciation of the franc.

However, in general, BMW'S
prices in most markets had
reached n level , when
customers were sensitive to
any increase. So, if demand
picked np unexpectedly, the
group had little room to push
up prices even though its
plants' were already working
at full capacity.

Output was being bolstered
entirely by increased exports
— which in the first quarter
were 25 per cent ahead.

Discussing tiie new
assembly plant BMW has been
considering for some time, Mr
Mund said the group would
prefer to locate it in West
Germany. This would allow
BMW more flexibility to
switch production of various
components or products
between one plant and
another.

. The group recently started
production of engines at its
plant in Austria. Ford has
an option to take 200,000
diesel engines from the plant,
beginning next year.

Mr Mund said BMW had
had discussions with nearly
all the world's ear makers
while seeking more customers
for the Austrian plant’s
engines, , but U.S. groups
seemed to offer the best
potential. ,

However, BMW could use
the Austrian plant to capacity
by switching some petrol
engine output from its
Munich factory, which was
fully stretched.

U.S. coal mine
stake for HCF

HOLLAND CARBON Fuels
(HCF), a Dutch energy
investment company, has
acquired a 59 per cent stake
in a UB. coal mine for.abont
gSOnu.

The' Scotts Branch Coal
Mine of Pikesvilie, Kentucky
has estimated reserves of
some 60m me trie tons of
coal and current production
of some lm tons per year.
The coal is low in sulphur
content and high in com-
bustibles.

HCF, which receives an
entitlement to the annual
production corresponding to
its equity stake, was created
in 1980 as a channel for direet
Investment in coal exploration
and production activities
abroad. Its shareholders are
DSM, the Dutch state chemi- .
cals group; -Estel Delfstoffen
BV, a subsidiary of Estel, the
Doteh/German steel group;'
and SEP, ft public electricity
co-operative.

- The balance of the shares
Of the Scotts Branch mine are
held by Plckands Mather, a
wholly owned subsidiary of
Moore McCormack Resources.
AP-DJ

S ti% I

1981 Activities.

1981 1980 %

(MUficmsoriL) (Mfflons amy Increase

Excerpts from the President's Report:

“...Yapi-Kredi’s dynamism at home
and abroad reflects a conscious change
of direction and a new management
structure. The development of better,
quicker and more comprehensive
services for domestic and international
clients consolidated the Bank’s position
in 1981.”

"...YKB's total lending rose by a little
more than a half, but the Bank’s
financing of exports rose more than twice
as fast, both reflecting the strong surge
in Turkey’s exports.”

"...The Bank participated actively in
the increasingly competitive market

place for commercial deposits and
personal savings, and its share of total
funds deposited rose from 1 1.7%
to more than 16% in just one year."

March 30. 1982

BANK

"TheTurkish Bank
that speaks your language:

Our 1981 Annual Report includes a wide-ranging analysis of the Turkish economy, it is now available in English on request
Please write lor the attention of Dr. Metin Berk. Vice President Yapi-Kredi Bank. Korsan Cikmazi 1. Istiklal Caddesi. Istanbul-Turkey.

U.S. $150,000,000 .

Chemical New York N.Y.

Guaranteed Floating Rate
Subordinated Notes Due 1994

Guaranteed on a subordinated basis
as to payment of principal and interest by

Chemical New York Corporation

In accordance with the provisions of the Notes, notice is
hereby given that far the three month Interest Period from
23rd June, 1982 to 23rd September, 1982 tiie Notes will
carry an Interest Rate of 16fr% per annum. The relevant
Interest Payment Date will be 23rd September, 1982 and
the Coupon Amount per US. SI 0,000 mil be U.S. $426.46.

Credit Suisse First Boston Limited
Agent Bank

U,S. $75,000,000

Girozentrale und Bank
der osterreichischen Sparkassen
AktiengeseDschaft

(Incorporated in the Republic of Austria with limited liability)

Floating Rate Subordinated Notes Due 1 991

In accordance with the provisions of the Notes, notice is
hereby given that for the three month Interest Period from
23rd June, 1982 to 23rd September, 1982 the Notes will
cany an Interest Rate of 16} % per annum and the Coupon
Amount per U.S. $1,000 will be U.S. $42.81.

Credit Suisse First Boston limited
Agent Bank

Banco Nacional do
Desenvolvimento
Economico

U.S. $50,000,000
Floating Rate Notes 1989

Notice is hereby given

pursue ntto the Terms and Conditio ns of the Notes feat
forth e three months from
23rd June, 1982 to 23rd September, 1982
the Notes will cany an interest rate of 16%% perannum-
On 23 rd September, 1982 interest of U.S.S42-81 will be
due per U.S.S1.000 Note and U.S-S428-06 due
per U.S£10,000 Note for Coupon No. 13.

European Banking Company Limited
(Agent Bank)

23rd June, 1982

Thai Farmers

International Finance Limited

US$25,000,000

Guaranteed Floating Rates Notes 1984

For thesbc months 23 June 1982 to 23 December 1982
the Notes will cany an Interest Rate of ^ IBjfjfc per annum
with a Coupon Amount of US$86.1 a

.Agent Bank

CkmicalBanc International Limited

U.S. $150,000,000

NATIONAL WESTMINSTER BANK
IJMTTED

- Floating Rate Capital Notes 1990

-

In accordance with the provisions of the Notes notice
is hereby given that for the six months interest period
from.23rd June, 1982 to 23rd December, 1982 the Notes
will carry an Interest Rate of 16i% per annum. The
interest payable on the relevant interest payment date,
23rd December, 1982 against Coupon No. 9 will be
U.S.S85.78.

By Morgan Guaranty Trust Company of New York, London
Agent Bank

NATURAL

Quarterly Dividend.

The Board of Directors of HcntstanlTafcnTal
Gas Corporation lias declare d the follow-
ing quarterly dividends, all payable July I,
2982 to holders of record. June 14,

1982; $12.6% per share on the 4.65%
Ccmmlattvre Itefbrred Stock, 1964 Series
C$100 Par), and 42^ per sbaze onfitis
C ommon . Stock ($lPar>

CitEford Campbell
TlteKssUeatimdSegffibcqr
dune 4, 1982

AIliedArab Bank Ltd

BALANCE SHEET AT 31st DECEMBER 1981

SHARE CAPITAL S:
RESERVES
Share capita!

General reserve
Retained Saratoga
(dafidl)

LOAN STOCK
10% Unsecured loan
stock

DEFERRS) TAXATION
LIABILITIES
Currant and d^joat
accounts
Accrued Interest
payable and ottei*
creditors

Corporation tax payable
Acceptances

15,000,000 15,000,000

400000. . —

27^34 mm

10427^34 14533^14

Sffpa tSEJXD PtWTteswy notes

ASSETS

Ca3h, balances with

bankers,, money at call ■

& short notice 35/B7PE5

Deposits with banks 10f,772»344

UKOovammaot — .

Securities 1 I S7^S74

Logps and aftranceo 117f514|25S

Rontesorv notes 1*100000

203,423^32 132^250^
8,425,160 6^622,853

Accrued Interest
receivable and other

{accounts

8,782^33

^32tV®4

59,233 855,60!

£288,818,734 £2D3£57yC7

Customers’ liability 00
acceptances

£28*919,734

44£tS£J7

8*000^15

691,184

66,157,009

jyXXyjQQ

4670,189

z&ysez

855^01

£203^57^127

The net profit of the bank for 1951, before taxation, was El 333,000. After providing for taxation of
2999,000, bringing forward the accumulated deficit at 31st December, 1980 and transferring
£4 00,000 to general reserve, retained earnings carried forward amount to £28^X30.

• fast Interest rose by nearly 30% to over £4 million.

■ Fees and commissions earned rose by 24% to a little over £1 .mlHton.

From our published Report and Accounts we record with pleasure that during the last financial year
our level of business increased significantly as follows;

Total Assets by 42% Deposits with Banks by24%

Loans and Advances by793fr Funds Raised by45% •

fn its role as an International commercial bank, and through the medium of fits London market,
the Allied Arab Bank seeks to provide a bridge between the Western and Arab worlds. Its
objectives are to attract custom and business not only from Arab investors at home or In London,
but also from foreign companies conducting business with Arab countries.

The attractions of such a bank to Arab Investors whether they are resident In London or their
home country afe obvious, and are proven by the considerable success which the Allied Arab
Bank Ltd already enjoys.

Head Office: Park Lane Branch:

Granite House, 97-101 Cannon Street, London EC4N SAD 131*132 Park Lane, London WIY3AD
Banking - Telephone: 01-283 9111. Telex: 8813401/2 Telephone: 01-6298474

Dealers - Telephone: 01-623 4098/9. Telex: 8812224 Telex: 299546

Telegrams: Arabal London EC4 Telegrams: Arabs! London WI

This announcement appears as a matter of record only.

June 1982

Hrfeentrol

PLC

US$65,000,000

8 year Unsecured Multi-currency
Globa! Credit Facility for Tricentrol PLC
and Group Companies

Provided by

THE ROYAL BANK OF CANADA

&

Kredietbank

Good figures after a difficult year

Some key figures from the balance sheet at 31 March

On million BF)

Capital and reserves
Working funds
Credit to the

-■ private sector in any form
•public sector
Profit for the financial year
Balance sheet total
Net dividend [BF)

Staff

Number of branches

15,894

540,908

269,292

188,785

1,761

588^01

365 *

8,523

753

15,126

443,936

236,008
152,051
1,760
486.327
365*
8,460
749 •

14,026

392,634

201,519

135,141

1,735

429,880

355

8,433

739

of HK property arm

BY ROBBftT GOTTOHL IN HONG KONG ; AND- WONG SUHLONG W KUALA LOMPUft

JfALAYSlA’S • Multi-Purpose
Holdings is making a. phased
withdrawal from its HongKong
quoted arm. Intercontinental
| Housing Development (DEED),
arid plans, to pass . control
to a third company. Territorial
i Development

The only details 'so far known
about Territorial are that it is
registered - In Hong Kong, and
represents overseas Chinese
investors in South-East Asia/ :

JED is HJ3 per cent owned
<by Bandar Raja Developments
(BKD), which is in turn 41 per
cent owned by Multi-Purpose
Holdings. In the first stage of
the transaction, BKD will buy
IHD’s major assets, comprising
24.7m shares in United Estates
Projects Berhad, and 8.75m
shares in Sharikat Pertama
Sendirian Berhad, BRD -will
pay IHD HK461.2m (US$77m),
representing HK87.50 per UEP
share, and HK831.5 per SPSS
share.

UEP and SPSB are both
Malaysian property companies:
UEP is developing Subang Jaya.
new town near Kuala Lumpur,
while SPSB has a 15-acre site
in Kuala Lumpur for which
development approval has been
given.

Hie second stage involve s the
Injection of new assets into IHD.
Agr eeme nt has been reached
for IHD’s wholly-owned subsi-
diary, Dixon, to buy a private
company called Accordance

which ira&ar. binding agreement
to buy -Asean Plaza, an office
block. Sha Tsui East, a
commercial- district of Hong
Kong at 'the southern tip of
Kowloon; - 'Hie' Mbck was
valued last -month, at HK$548m.
Dixon, wta pay HK$7 Jtn for the
share . ^aipted = of Accordance
and will assume. ' debts of
HK$537^mowed by'Accordmce.

The : third stage is tire passing
of contrflfl; ftwin BRD to Terri-
torial. -;T6rrifdrfaJ' will make a
cash offer of HK$424 per share
to IHD. shareholders. BKD has
sadd it will accept- the o ffer m
respecf of Mi$ per teat of lap’s
sharceapfctal, wit win hold On
to a further 59.7. jter' cent; .

Schroder* and Chartered, the
merchant -bank radJrisBg Terri-
torial, says the, o ffer v alues -Hie
whole Of !XHp -*at HK$545m.

Territorial ' says it Intends
that iHD.should. become a Hong
Kong proper^ company. BRD
says ‘ it wiH be . selling its
res idua l 29.7 per cent holding
in IHD. Within a year from' the
dose or the Territorial offer.

XHD was incorporated in
1972. BRD acquired 57.7 per
cent fznan Goodyear Investors
(GIL) in . 1980 and made a
general offer in April, 1981.

GIL ' said when It . sold its
controlling stake : in IHD to
BRD that the major Malaysian
proj ects being, carried out. by
IHD pould be more profitably

-handled toy- *. management -in-
Malaysia, _1_

• The new initiative by -BRD
to assume . direct control of.
IHD’s ‘Malaysian, assets took?
like .a logical extension of that
operation.- ■ \ " £■■■

Schroders -and .. chartered;
says details .of. -Territorial
Developments wfH becjmie
available when a formal' offer
document is .released,

Financial circles - KuSM.
Lumpur see three TOasOte for
-IHD’s ■ restructuring..^ ", Firtt,
because there is no 'douBle
taxation agreement - between
Malaysia and Hong'. Kong, add
BRD is heavily taxM on divi-
dends it receives -freim IHD.
BRD's 1981 pretax, profit was
19.5m ringgit {US$8J5nrt,. but
its ' after-tax profit- was only
6.6m ringgit "

Second.. .BKD bought - info.
IHD largely because ofits- hold-
in gs in UEP and SPSB..-, After,
these stakes ac e hiv ed Off .the
attractions of XHD' ; for'. BRD
are considerably reduced..
Third, MPH Is finding it a'
great burden to 'service all the.
loans it took to finance its spate
of acquisitions. -These include a
HK$40Sm loanrto,belp BRD buy-
. into IHD.

By selling off the remaining
29.7 per cent of IHD rat .a later
stage; BRD should' - realise ; a
substantial amount- of cash to
enable it to p ay_a . better divi-
dend to help MIS. : -

$200m loan for Bahrain group

BY MARY FRINGS IN BAHRAIN

BANK of Bahrain and Kuwait '
(BBK) is arranging a US$200m 1
loan for the Bahrain and Kuwait '
Consortium for Investment, a
Bahrain offshore company :
formed earlier this year with a
-paid up capital of BD55m j
(U.S.$146m). 1

The S200m loan is believed to ]
be the biggest arranged in i
Bahrain directly for a non- i
government borrower. The. lead <
management group. In addition ]
to BBK, includes Kuwait 1
Foreign Trading .arid Con- i
tracting Investment Company, 1
A1 Ahli Bank of Kuwait 1

Gulf Iritentotiduat Bank, Arab
Banking Corporation,- Saudi
National ‘ Commercial. Bank,
United Gulf Dank. 1 and Bahrain
Investment Company. .

The four-year loan carries an
interest rate of I percentage
point abcrye the' six-months’
Bahrain inter-bauk offered irate,
with ' a grace - period of ' - 18
months. -

• Bahrain- -Investment Com-
pany plans to raise- Its capital
to $6Qm. BIC was established
as a closed, company in 1977,
but its progress has been ham-
pered by a small capital base

of only BD2.5xh ($&&&$.

About half the - additional
funds are expected .to ' come
from . exiting Bahfaiiii shire:
holders, which include the
General Organisation for Social
Insurance (GOSI).

The remainder wSl be sub-
scribed by companies arid fiaan*
dal institutions in Bahi^iB and
other Gulf states. !

The company’s .anrin^feport
just published, shows a. 24 per
cent improvement in bet earn-
ings -In A98L to BD422.00Q, Its
balance sheet total rose 42'per
cent to- BD23m. / “ .

SHK completes
share sales

.By Our Hong Kong

Correspondent

SUN HUNG KAI Securities has
completed the deal announced
last month whereby Merrill
Lynch of the U.S. was to acquire
a 25‘ per cent stake in Hong
Kong's largest stockbroker,
while France's Paribas would
increase its stake from five to
almost 10 per cent. The out-
standing element of the deal
was a lender offer for 10 per
cent of SHK shares, to be split
between Merrill and Paribas.

ICS sees margin squeeze

IMPERIAL Cold Storage and
Supply’s margins . Could .be
adversely, influenced- 'toy in-
creased totorest and operating
costs in the year ending Febru-
ary 1983. Mr W. H. Neate,
chairman said.

Costs of • the South African
food group are being contained
where possible but demand may
be affected toy current economic
conditions. . ■ .

Imperial Cold Storage's pre-
tax profit rose to R32.38m
($2 7m) in tilt year ended Feb-
ruary 28 from R25.23m in the
previous year,.' earnings -per

Share to 64.8 cento ' froth 50
cents and dividends ±6 20 c4nts
from 18 . cents. . — -

Mr Neate said last'yeifs .fan*,
proved - results .reflect benefits
from the company's continuing
investment- programme Coital
spending on major projects is
estimated at R80m over the next
five years". *

Since" the company 1 & year^end
C. G. Smith and its subsidiaries
have obtained a controlling in-
terest in Imperial Cold Storage,
which, - however, will continue
to operate independently. -•
Reuter - • *■ • ;

INTERNATIONAL APPOINTMENTS

Pharmaceutical chief fur
Procter and Gamble

7,461

185,944

90,681

70,766

950

207,138

245

8,035

694

* In 1981 , this tfividend was pad to 2,005,717 shares, whte 100,285 new shares resitting from the bonus aBotmert were entitled
to haB the dhndend for me ftnanctal year; thus in 1 982 the same dividend is paid to the 2,1 064X32 outstanding shares.

Useful addresses

Head office

Arenbergstraat 7, B-1000 Brussels CBelgium)

Brandies

753 branches in Belgium
Abroad

Kredietbank New \brk Branch, 450 Park Avenue, 6lh floor, Newark, N.Y 10022
Kredietbank Grand Cayman Branch, P.O. Box 694* George Town, Cayman Islands
Kredietbank (O.B.U.),Salahuddln Building, P.O. Bax 5456, Manama, Bahrain
Subsidiaries

In Belgium ■ ■

Credit Genera) S A de Barque, Grate Markt 5, B-1 000 Brussete

Hypotheek- en SpaarmaatschappO van Antwerpen, Mechelsestesnweg 176-178, B-2000 Antwerp
Abroad

Irish Intercontinental Bank Ltd., 91 Mem'on Square, Dublin 2
Bankverein Bremen, Wachtstrasse 16, Postiach 107420, 02800 Bremen 1

Associated Banks

Kredietbank S.A. Luxembourgeoise T 43 1 Boulevard Royal Luxembourg
Kredietbank (Suisse) SA, 7 Boulevard Georges-Favon 1 CH-1$11 Genevan

Associated Institutions

Inter-Alpha Asia (Singapore) Ud„UtC Building, 20th floor, 5 Shenton Vfey, Singapore 0106 .
inter-Alpha Asia (Hong Kong] Ud, 2501 Connaught Centre, 1 Connaught Place, Hong Kong

Representative offices

fn the USA (4 centres], Australia, South -Africa, Mexico, Japan. Brazil Singapore, ban, Venezuela, Hong
Kong, Spain and Great Britain.

Member of the IntfirtAipha Group of Banks -

A copy of Kredetbank’s
1981-1 982 annual report
can be obtained
from the following address:

l

KREDIETBANK

Kredietbank Representative Office
20 Copthail Avenue
London EC2R 7JD

• PROCTER -AND .GAMBLE CO.
has app6inted Mr . Charles C.
Carroll to head- the worldwide
pharmaceutical operation it pur-
chased from Morton-Norwich
Products Inc An June 9. He is
currently vice-president, beauty
care and health and personal
care divisions, and has been
elected vice-president, Norwich
division. He wa& also appointed
ceneral m&hager of Norwich-
Eaton Pharmaceuticals Inc. He
will assume Overall responsibility
for Procter and Gamble’s
pharmaceutical - business. Mr
W. B. Connell will head the
beauty care- division and Mr
C. A. Lleppe will head the health
and personal care division.

• Dr John - . Fey- has been
appointed chairman Of National
Westminster' Bank’s wholly-
owned ■ New York-based sub-
sidiary, NATIONAL BANK OF
NORTH AMERICA. 1 Prior to his
new appointment Dr .Fey was
chairman. - of - Equi tabl e Life
Assurance Society fUSAl. He
succeeds Mr John Vogel, who
has retired. Mr William Knowles,
who continues as president, takes
on the -additional duties of chief
executive officer, Succeeding Mr
Thomas Frost, who : returns to i
the UK as general manager of i
National Westminster Bank’s i
business development division.
Mr Robert Wallace, setrior execu-
tive vice-president, has- taken on
the additional -responsibilities of
Mr KnwlesV previous position
as chief operating officer.

• KLM*s deputy head .of
marketing and head of freight
marketing, Wfr P, Bou>v, has beep
appointed area- manager Europe
and Africa from January 1, 1983.
He succeeds Mr L* Asjes, who
will be retiring' at the end of
this ye»-Mr Bmrvy will be suc-
ceeded ras head of freight market-
ing by Hr.L M. van Wljk,
presently head of freight handl-
ing and .deputy head of the
freight department of Schiphol
Station.

• Hie "and chief

operating officer of General Tele-
phone and Electronics Corp. In
the-TT.S., Dr Tliontas A. Vander-
slice, has -been . elected to the
hoard of EMERY. AIK FREIGHT
CORP; He replaces Mr Walter G.
Corcoran,- a former senior vice-
president of the company, who
is retiring.

• Mr GeorgO V. Gnrae. a vice- .
president ana director- of The

Reader’s Digest Association, has
become chief exec utive officer of
SOURCE telecomputing

CORP, a subsidiary. He replaceS
Mr Graeme- Replug, who has
resigned for personal reasons. -
• Mr Hyman- Weinberg, a
general partner of - .Goldman
Sachs and Co, has Seen; elected
a ■ trustee of tfca FINANCIAL
ACCOUNTING FOUNDATION.
He fills a vacancy on the Ward
of trustees. ' The 1 '.trustees ' are
responsible for selecting mem-
bers of the Financial - Account-
ing Standards Board . and ! -Its-
Advisory Council, - -The : fOuPtia-
tran alwexercises general- over
si^rt over - those • • -two
organisations. The tokrd„ of
trustees is made up of notnmeee

mK

■ThI ii

; BY Y/UIMM CHTSLFTT tN MBCBDOrCRY; -

GRUPO ‘ . iuanstidal.. \.Aiufeu. the in tus’/negotiaferiff 'w4Qt '.St:
trOubled.^ -'MteriCTn'- ^ «mgtomerate--CaiTos° . Martinez '.the

which suspended in .April prin- former head of fpreign bortfow-
dpal payments on its $2&n ing operations at the finance
external debt, meets the steer- mxnistiy who •&._ handling the
ing oommfttee of its creditors-' mattep fiy-Banctoas. ' v ..V .-

“W W tori

may dodasra that^orae (h ito that the^ernmeiit \touldllke
■interest payments. - - • - ninwuhi-.

Floating Rate Notes; Due l 992

In accordance with the pro wriro of the Notes, notice is
hweby given that for the six month Interrat Period from
23rd June, 1982 to 23rd December, 1982 the Notes will carry
an Interest Rate of 16&% per annum. The relevant
Interest Payment Date will be 23rd December,! 982 and the
Coupon Amount per U.S. SI 0,000 will be U.S. $854-64.

Credit Suisse First Bostonlimifed
Agent Bank

Tbtae Cer dflea tt S have been Sold- This axmountgmgm: as a martrr rtf rfryrrW nnly.

New Issue

May 1982

u.s.$ 30 ,ooo,ooo /;

N^ioable Floating Rate Certificates
of Deposit 1995-1987

- Orion Royal Bank Limited

ArabAfrican trtt&riiational Bank
Giir6 -

Credit Agricoiij

Gulf International ‘fiiiik B.S-C.

LTCB Inte rn atmfniil »l jmttefl.

Yasttda.

Banco de B 3 baD, SJL

. First Austrian Bant
Kuwaiti-Frencli Rant- .

Takugin Internarional Bank
(Europe) 5Ai

Financial Times Wednesday June 23 1982

31

Companies and Markets

LONDON STOCK EXCHANGE

Sterling recovery pulls markets round but equities
turn easy late in contrast with British Funds

Account Dealing Dates
Option

•First Declare- Last Account
Dealings lions Dealings Day
June 7 June 17 June IS June 2$
JUne21 July I July z JuJyl2
July S July IS July 16 July 26

* " Nw " dMtblg may taka

• from 9 am. two. business day*

Sterling’s continuation of its
o verm git New York rally
against the dollar gave London
stock markets cause to put on a
slightly braver face yesterday
after seven days .of falling
. values. Ail three main invest-
ment areas recovered as demand
crested by professional covering
of short positions temporarily
relieved markets from the ad-
vene effects of U.S. interest rate
anxieties and . threatening
domestic Industrial problems.

The Middle East crisis failed
to check the largely technical
recovery, but leading shares
wilted noticeably after the
official. 3430 pm, close. This
followed a return of Wall street
uncertainty in the light of a
pessimistic forecast by a leading
U.S. investment analyst; the
market there was slightly firmer
in the early trade yesterday.

Earlier the continued reluct-
ance of UK investors to commit
fund to London equities left the
undertone still fragile, and most
leading industrials gave up the
hulk, of their gains’ in the after-
hours’ trade. Illustrating this,
the FT Industrial Ordinary share
index closed only 0.9 higher at
555.8 after having posted a rise
of 4 points at the 3 pm calcu-
lation. Over the previous seven
sessions, the index had dropped
nearly 30 points.

. The FT-Actuaries- All-Share
, naex closed 0.9 per cent down
at 323.28— more than 5 -per com
off its June 8 record high.

Bear-covering and revived
small investment Inquiries found
the Gilt-edged market especially
responsive. Underlying condi-
tions were even more sensitive
than in equities and, with the
pound maintaining its recovery
throughout the day, the Funds
went progressively higher. After
the official dose, the longs
hardened a shade further,
stretching their gains to nearly
a point Rises at tie shorter end
of the market ranged to i and
the £30-paid tap. Treasury 12]
per cent Convertible 1986 im-
proved that much to 29}.

South African Gold shares
remained extremely quiet and
the effects ' of a bear squeeze.
Initiated by yesterday's rally in
the bullion pripe, soon began to
fade. Final movements were
small and mixed with the FT
Gold Mines index down 2 points
more at 1SL2..

Manet active

Miuet, the subject of consider-
able speculative interest
recently on takeover hopes, re-
acted to 143p before settling a
net 4 down at 14p in the absence
of developments. Elsewhere in
the Insurance sector. Prudential
met revived support and closed
5 dearer at 245p, after 247p,
while Legal and General
improved 6 to 256p. Run Life
also added 8. to 358p. Early
gains of a few. pence. in. Com-
posites were pared and some-
times replaced by net falls

140|

3980

1981

1988

FINANCIAL TIMES STOCK INDICES

Jim*
22 .|

June

21

June June
IS 17

June ; June i year
16 . IS ago

i ;

Government See* 68 Jig; 68.60

Fixed Interest. 88.69 gbai>

Industrial OrcL | 665,9; 9S4.Bi

Gold Mine* i IBl^j 183.2;

Ord. DIv. Yield : 6.62. 6.64 !

Earning*. Yld.Xlfullli 11.71! 11.75 1
WE Ratio (nap 10.3ft 1 10 JIB 1

Total barseine. .. .• 1*,125 ( 16,606!

Equity turnover £m — >101.65)
Equity bargeln*-4...r ‘ 1 1,005 1

68.06;
Gfl.BSj
568.0
195.4J

5.61

11.68;

10.41

16,731

137.05

13,076

69.31
70.29'
659.4;
203 J;
6.58:

X l.Soj

10.45

14,869!

118-73,

12,060

60.85!

70.3&!

566,5

211.1

5.51!

Ilj47|

10.60:

15,052‘

99.71)

11,216;

69.69' 66.48
70.42| 67.82
570.B* 544.5
B10.b| 315
- 6.48 5.90

11.42 11.76
1D.65J 10.61
17,84~2j 10,286
147.64! 104 Aft
13,9141 14,304

10 em SE6.0. 11 tm 366.3. Noon 657.5. 1 pm. 658,6,

'2 pm S56.fi, 3 qm 5S8.9.

Been 100 Govt. Secs. 16/10/126. Fixed Int. 1328. Industrie! Ofd.
1/7/35. GoW Mines 12/9/68. SE Activity 1974.

Latest Index 01-246 8026.

•N4-B.61.

HIGHS AND LOWS

S.E. ACTIVITY

1B82 . Isince Coftipllat'nj ? June J June

T— : 1. ... •. 21 t la

1

High.

1 Low

| High | Low

GOVt.SoCL.-l

70.40

(7/8)

6149

(»/1)

1

’ 127.4 i 49.18
; (8/1/86) ; (8/1/76)

Fixed Int...,

70.07

(14/6)

; 62.79

(7/D

1 160.4 50.33
:(2I/I1/47) (6/1/75)

Ind. Ord i

594.0

! 618.1

1 S97.3 | • 49.4 |

(8/8)

ft/1)

1(98/4/81) (20/8/40)

Gold Mlnea .'

302.0

<Pfl)

181.2

(22/6)

[ 558.9 ! 43/6
W/B/89) (ttllH/71) 1

—Dally . . |

,Gilt Edged ; ,

; Bargains- 1 141.B 1 160.6

.Equities.-...: - i

Bargains...- 71.3| 84.7

Gilt-Edged
Bargains^.
Equities j

205.5j 277.0

i

159A-. 165A

following reports of a broker’s
*bearish circular.

The major clearing banks took
a distinct turn ifor the better in
late dealings on technical in-
fluences. Barclays and Lloyds
both gained 13, to the common
price of 3SSp, while Midland,
332p, and NatWcst, 426p. added
4 apiece. Hambros, standing 4
higher awaiting the annual
results, reacted to lOSp on the
announcement before closing un-
changed on balance at 113p.

Recently dull leading Build-
ings staged a useful rally, mainly
on technical Influences. Tarmac,
at 284p, recouped 12 of the pre-
vious day's fall of 16, while BPB
Industries, a particularly
depressed market recently on
worries about . the impact . on
profits following the devaluation
of the French franc, touched
420p before settling a net 8 up
at 41 Sp. Bhie .Circle.- improved 4.
to 434p and BMC 5 to 241p, while
Redland, preliminary results due
tomorrow, put on 4 to 172p.
Housebuilders remained over-
shadowed by waning interest
rate optimism, Barra tt Develop-
ments shedding 3 for a two-day
fall o i 15 to 271. Countryside,
however, hardened a penny to
135p following the increased
interim profits. Elsewhere,
Burnett ■ and Hall ams hire
touched 855p before, closing a
net 20 pp at 835p following the
good preliminary results and the
chairman's confident statement

I Cl edged up to. 316p before
drifting off to close unaltered on
balance at 312p. British Benzol
put on 2 ifor' a two^day gain of
2| to 13jp in response to the
return to profitability.

Sonic suspended

Leading Stores took up a
slightly firmer position, although
trading remained thin. Gussie A
added 10 to - 500p. Dealings in
'hi-fi retailers Sonic Sound were
suspended at - 34p pending an
announcement; • the shares,
traded at 129p earlier in the
year, have tumbled sharply
following the interim loss. In.
contrast, Polly Peck attracted
scattered support and at 325p,
recovered the previous day’s fall
of 11; the - interim results are'
expected today. J. Beattie A
were quoted ex-th e-scrip issue at
67p, a gain- of 2. A. Caird, a

volatile market of late recovered
from - Monday's bout of profit-
taking and closed 10 higher at
'3S0p.

Leading Electricals passed a
relatively qjiiet trading session,
but usually dosed a few pence
firmer. Awaiting the preliminary
figures, Racal firmed 5 to 428p
- helped by the announcement of
a £20m. Navy contract. Plessey
ended a couple 1 of pence dearer
at 452p, after 45 &p. while
Ferranti traded firmly at 725p,
up B, in front of today’s annual
results. Scattered support left
Cable and Wireless 7 to the good
at 275p, while United Scientific,
up 17 at 357p, more than re-
covered the previous day’s foil
of 10.

.. Trending firmer initially, lead-
ing Engineers ended the day
with small mixed movements.
John Brown closed a penny
cheaper at 54p, sentiment not
being helped by the company's
statement on U.S. sanctions
against trade with the Soviet
Union and the possible implica-
tions for its Siberian gas tur-
bine contract Vickers hardened
to 143p in the early dealings, but
closed 3 down on the day at 139p
following- the proposal to reduce
output at its Rolls-Royce sub-
sidiary. British Northrop ad-
vanced 6 to 18p on the cash offer
of 18p per share from the priv-
ately-owned Padworth Invest-
ments, while GET International
responded to the preliminary
figures with a rise of 7 to 82p.

Business In Foods was at a low
..ebb, hut the leaders displayed
occasional improvements. Else-
where, Haxlewood Foods gained
6 to 242p following the reported
acquisitions.

News of the rights Issue suc-
. cess prompted support for Grand
Metropolitan, which touched
227 p before settling a net 4 up
at 226p.

. 'Leading miscellaneous issues
. displayed a firm appearance but
trading conditions were ex-
tremely slow and most quota-
tions -finished a few pence below
the day’s best Reed Inter-
national touched 282p before
settling at 280p for a rise of 6
on balance following the Mono-
polies - Commission clearance for
the proposed transfer of 19
newspapers to The group. Har-
greaves Group responded to the

increased dividend and annual
profits with a. rise of 6 to 60p,
while Whltecroft, still reflecting
satisfactory preliminary figures,
firmed 3 more to 71p.

Johnson Matthey took a
distinct turn for the better and
rallied 8 to 235p, but Wolaeley-
Hnghes encountered selling and
gave up 7 to 3S3p. Chubb picked
up 4 to 107p after recent dull-
ness on suggestions of a rights
issue; the preliminary results
are due today. Renewed demand
lifted Ca rarer 2 more to 59p,
while Scottish Heritable were
also noteworthy for a rise of 4i
to 43p. Other firm spots included
Diploma, 7 to the good at 255p,
and BTR, 6 better at S12p.
Sllentnlght hardened 2 to 92p
following the annual review. ■ •

Trident TV attracted further
speculative interest and pat on
3 for a two-day gain of 6 to 70p.
Horizon Travel, a dull market
recently on reports of fewer
holiday ■ bookings, rallied 9 to
195p. Leisure Industries shed 2
to 131p on disappointment with
the annual results.

Motors and Components rarely
showed price movements in
excess of a couple of pence.
Lookers hardened a penny to
47p despite the sharply reduced
interim profits, while Braid
moved up 2 to 54p following the
company's further opposition to
Lookers' 50p per share cash bid.

Paper Printings featured
Bern rose which advanced 6 - to
12Sp following news that the bid
from BunzI has been cleared by
the Monopolies Commission;
BunzI added a penny to 163p.
Bullish comment on the interim
statement prompted further sup-
port of Allied International
Designers, 2| dearer at 33p.
G. B. Papers held at 21p follow-
ing the reduced full-year loss.

Leading Properties took a
modest turn for the better.
Ceii trovin dal Estates hardened
a penny to 171p in response to
the increased annual revenue
and dividend, while Espley-Tyas
added a. like amount to 87p fol-
lowing satisfactory interim
results. Second City Properties
stayed at 55Jp; it was announ-
ced yesterday that Control
Securities had reduced its stake
in the company by 100, 0OO
shares.

Oils quiet

Oils rarely strayed far from
overnight closing levels. British
Petroleum edged up a couple of
pence to 304p, -while Shell fluc-
tuated narrowly before settling
without alteration at 400p. Else-
where. late support lifted
Sovereign 15 to 295p. The
absence of news on the Humbly
Grove drilling left Carless only
2 firmer at 167p. after 170p. KCA
Drilling encountered support
and put on 5 to 46p.

In Overseas Traders, Tozer
Kemsley, at fiOp, picked up the
previous day's fall of twopence.
Inches pe held at 255p after
recent weakness on disappoint-
ing results.

Trusts presented' a mixed
appearance. Among money
brokers, Exco International
closed 5 better at 188p, while
RP Martin finished unaltered at
315p after being down to 3I0p.

Shippings followed the better.,
trend, British and Common-
wealth regaining 4 to 442p and
Ocean Transport 3 -to ll?p.

Textiles generally ended little
changed, but Nottingham Manu-
facturing put on 8 to 17Sp. Stirl-
ing Group rose another two
pence to ?lp, but losses of 2
were recorded in David Dixon
and Montfort Knitting Mills at
1982 lows of 94p and 39p respec-
tively. Small and Tidmas gave
up 3 for a three-day drop of 10
to 65p following last - week's
annual general meeting. Nova,
(Jersey) Knit, firm recently on
results, eased 3. to'79p, while
Robert H. Lowe closed the same
amount lower at 52p.

After a small two-way busi-
ness,. Tobaccos ended on an
irregular note with Imps
unchanged at 96p and Bats
rallying 5 to 445p.

South Africans turned steadier
after Monday’s sharp fails,
although OK Bazaars- fell -25
more to 600p. S. A. Breweries
picked up 2 to I60p and Barlow
Band rallied 9 to 277p.

Charter up on results

Having attracted scattered
support ahead of the announcer
meet. Charter Consolidated
were marked sharply higher
following annual profits at the
top end of market estimates and
the expected 10 per cent divi-
dend rise; despite an absence of
follow- through demand, the
shares closed a net 15 higber
at the day's best of 185p.

Other London-based Finan-
cials also made a firm showing,
with Gold Fields also 15 to. the
good, at 33Qp, and RTZ 11 dearer
at 358p.

South African Golds regained
a certain amount of poise after
the heavy falls of the previous
few.chiys. Helped by the weaker
dollar, the bullion price re-
bounded above the psychologi-
cally Important $300 an ounce
level to close $10.25 higher at
$306.25.

Heavyweights finished with
modest gains. Kloof rose } to
$10 j, while Driefontetn finned
34 to 862p and Randfontein
hardened a shade to $20).

Lower-priced counters, how-
ever, displayed a decidedly
mixed appearance and the Gold
Mines index eased 2.0 to 1S1.2
to record a loss of almost 30
points over the last four trading
days.

West Rand Consolidated con-
tinued to react to the news that
State aid is to be withdrawn
from the beginning of next year
and gave up 5 for a three-day
fail of 25 to 52p. South African
Land, 92p, and Vlakfonlein, 63p,
both eased 6, but Londne rallied
5 to 78p.

Diamonds were also firmer at
the-close with De Beers 7 up. at
172p, and “Anaminr a point
better at £22.

The generally uninspired per-
formance of the London equity
market and lack of support for
the underlying securities re-
sulted in another acutely
disappointing session in Traded
Options. Contracts completed
yesterday amounted to only 637
— barely half the previous day's
total.

RECENT ISSUES

EQUITIES

tssua i§3i«efl| 1982

pri.w gslsis' i— I

P J High j tow

Stock

f 137 iF.P.i -

1106 fj*.i art

600 F.P. 1 3/7
F.P.:i4;7
F.P.;29/6
F.P. -
F.P.f -

77

140

■PC

«

Argyll Foods Warrto.i 11
Assoc. Heat 8ervloes260
iBalrstow Eva* Sp....... 62

+ Black [Michael] 20p) 93
■Cambrian A Gen. 7*pi 30
l+Cont. Microwave ...4B0

*Dencora ! 66

'*Drtick Hldgs. -163

Elostro-Prot. USfO-HB 98

iGroup Inv Option 12

■{•McCarthy ft Stone... 1 167

* Mile* 33 lOp. 1112

Oriflame SA (USSi.6Dil595
■{•Radio City ‘A* NV.J 89

•{•Ruddle (G.1 lOp 1190

Stewart Naim I 83

Zambia Cons Cpr 10K 60

1-2

'09.0 i 8.1
jbl.6i: 2.6
Iu3.0 j 2.4,

i lUIUjbSJBSj i7o

I Z'.'.'.'bzji ! a.6

■1x6 jUQl-Ba 8.B

j bwrei

, udS.0 1 4.3

UlD IbQSOc 2.2
I bS.B ' 1.6

1 + 2 |b5.3

8.6

44184

4.412.7

4.6 |l 2.9

LBlITe

8J3 2sT3
0.912.4

oTbib.o
a.6 9.7

4.7 9.5
9.0110.4
2^|21.3

FIXED INTEREST STOCKS

Issue ! 1968

P £ sa l Si ftp; ■ • • •-

1 P*

Stock j S

J O “

j « 1.1-3 K 1 High ■ Low

j o a.

U-or

' f sails
price
. P

£ g- 1 Latest
i Renunc.,-
E= ; data
<£| • ■

10

166

17D

136

174

Kr.160

60

326

215

10

25

F.PJ27/4 28/S
Nil 1 - -
F.P.IlS/5 24/6
F.P.I28/S 917
F.P.116/6 30/7

Nil 1 — -

Nil 24/B 13/8 j
F.P.!l7(6 30/7
Nil | S/7 13/8
F.P.;24/3 23/4
F.P. 10/5 -10/6

1 100 I Nil

*100 i £10

499.S8& 1 *35

*100 |FJ».
*•: '.f.p.
101 F.P.
S100 ■ F.P.
96.55 £25
*100 £ 10 -
4100 I F.P.
iioo I F.P.

ion
*100
4100
4100

F.P.

F.P.

F.P.

£10

, — 7pm'
;26 IB 111*,
11417 1 85ii
. 1/7 1 102

- J146 la'

! - 109

9/7 -101
8/10! 26
26/8 I III 4

— 1007B

- 1100
,100 Ib

— 1-47.

— ■ 46

129/7 11»«

Spni Benlox 8% Cbnv. Cum. Rd. Pf -4iflpm

10isjBcurnemoutftWater9% Rad. Prf.'67B9| 113*
BUr'Cred. Foncier de r ante 1<?S LonJOQ? 1 , 23*1

10034 East Anglia Watei »% Red. Prr. 1967 ..>101 S 4
136 iRret.Nat. lftipc Conv. Una. Ln. 1987... 140
107 |>{>LonaContI I j%Conv^ub.Une.l.n.’954)2;10B
92 isiMarlbo rough Prdpa.lO«Cnv. Ln.'9S-20B! 92 la
853 4 lMidland Bk. 14% sub. line. Ln. 200247. 84i«

11 Mld-Southarn Wtr. 9% Pret. 1967 115,

lOOrkl Nationwide Bdg. Soc. 14l,£ (25(4/8311004
: 907,1 Do. 13: B % (23/5/63) IDO

lOOle ' Do. 13 t.-£ |3i 6/83).. 1001a

38 HIT ft Northern 4po Net Cum. Prf. £1 41
45 Do. 4.7pc Net Cum. Prf. £1! 46
lOislWrexham Water 9% Rad. Prf. '87-6B...: 115,

i— 1 *

+ii’

+1

-rl

+ ia

-u"

** RIGHTS ” OFFERS

1962 .

High I Low

Btook

135,1'
£2pm
190
160 1
833 !

£S4pmi

apm

443

40pm

12*2!

■ 241bi

-10 - Ansbacher (H.> 6p

18pm Applied Computer Tech...

160 Bank Leu mHUKl £1

158 Carles* Cajpal lOp —

218 Grand Met bOp

£3 pm Great Northern Tel (£10).,

2pm Press (Win.) lOp —

360 iSaatchl ft Saatehl lOp

29pm Sketchley~

9>2iSturla lOp

24 {Young iH.)

M-or

10U| + 1*
iBpm— 4
ns 1 —

Renunciation date usually last day for dealing free of stamp duty, b Figures
based on prospectus estimate, d Dividend rata paid or payable on part ot
capital: cover based on dividend on full capital, g Assumed dividend and yield.
t Indicated dividend: cover relates to previous dividend. P/E ratio based on latsst
annual earnings, u Forecast dividend: raver based on previous year's earnings.

F Dividend and 'yield - based' on prospectus' or other official estimates far 1982.
Q Gross. T Figures assumed. • Figures or report awaited, t Cover allows for
conversion of shares not now ranking for dividend or ranking only far restricted
dividends. S Placing price, p Pence unless otherwise indicated. 7 Issued by
tender. 0 Offered to holders of ordinary shares as a "rights." “Issued by way of
capitalisation. Sf Reintroduced. 17 Issued in connection with reorganisation,
merger or take-over. fi|| Introduction. □ Issued to former preference holders.
■ Allotment letters for fully-paid), ft Provisional or partly-paid allotment letters. -
ik- With warrants. tt Dealings under special Rule. 4< Unlisted Securities
Market, tt London Listing, f Effective Issue price after scrip, i Formerly
desit In under Rule 163(2)(a). tt Unit comprising five ordinary and three
Cap. shares. A Issued free as an entitlement to ordinary holders.

ACTIVE STOCKS

Abo-re average activity was noted In the following stocks yesterday

Closing

Stock
BPB ...
Carlass

Capel

De 8eers Deferred..

GEC

Grand Metropolis ri

pnee

Day'B

price

Day's

pence

change

Stock

pence

change

418

4- 8

Minet Hldgs

... 144

“ 4

167

+ 2

Polly Peck

.. 325

+ 11

165

• +15

Prudential

... 245

+ 5

172

+ 7

RTZ

... 358

+11

925

+ 1

Tozer Kemsley

... 60

;+ 2

226

+ 4

Vickers

... 139

- 3

MONDAY’S ACTIVE STOCKS

Based on bargain* recorded in S.E. Official List

Monday's

No. Of

dosing

No. of

dosing

price

price

Dey'a

price

price

Day's

Stock c

: fienges

pence

change

Stock

changes

pence

change

Caird fA.1 ...

12

370xd

-40

Tarmac Nbw

... 10

272

-IB

RTZ

12

347

-11

Tridont TV

A 10

67

H- 3

Brclya Bk New

10

375

- 8

Blue Circle .

9

430

i- 8

Cna Gld Fields

10-

315

- 8 .

Hanson Tsi .

9

15Bxd

- 7h

GEC

10

924

- 1

ICI

9

312

—

Glaxo

10

683

- 6

Polly Peck ....

. 9

314

-11

Minet

10

148xc

+ 8

Race) Elec ....

. 9

423

’+ 5

FT-ACTUARIES SHARE INDICES

Thee bribes are the joint carapibtian of the FhokU Times, the Institute of Actuates
- and the Fherity of Actuaries

EQUITY GROUPS

Tues June 22 1982

Mai

June

ZL

Fri

Jane

18

'Thr

June

U

MM

June

16

Yrer

& SUB-SECTIONS

Figures la parentheses show matter of
stocks per section .

Index

Na

ws-

Ctaoae

%

BL

Earning
Yield %
(MaxJ

Gross

DIv.

YieM %
(ACT
at 30%)

BL

P/E

Ratio

(Net)

Index

Ma.

Indot

No.

Index

No.

Index

No.

Index

Nb

1

CAPITAL GOODS (209)

380j61

+0JB

951

432

13.00

37745

38151

38461

30059

34576

Butffflng M^ariak (23) .

322.49

+15

3229

562

990

307.77

32412

33908

33146

38239

3

CwtflKftngt, OonsfnidfeM (2ffl

57956

143430

+H2

+05

3435

635

529

269

7.94

1832

57829

34Z7.4B

59472

M3299

60630

143787

61446

144439

55590

107754

47639

+14

33.90

635

8.65

47039

475.94

40972

40913

-4 0934

196l42

+0.9

1169

595

1033

19459

19539

19607

20031

2M33

8

Merab and Metal Forming CUJ

15046

8855

+23

-0.4

3191

194

800

7.99

1050

247.41

8867

15L95

8907

15534

8941

15675

4L37

tt3L96

19246

10

ZL

35024

+16

1036

6J)9

1185

34469

35L91

35634

36139

37056

CONSUMER GROW (201)

30231

+B9

1331

5L78

9123

29955

3B3J1

30436

30148

20579

320.76

+13

3458

636

840

33677

32146

32245

325l43

32536

25753

+0.7

nil

7.30

644

25563

257JI

26040-

26454

26952

+05

926

3(69

1331

66186

61945

63504

61576

5ZL90

27

HMkhandHtxJsd»wrProduct*(8)_.

SS

+12

+02

730

1068

3.78

557

1533

1171

44575

434B5

45108

42930

45436

4035

46228

42543

337 JO
«3«1

-42

nn.

636

■ 1 951

51633

51972

535J7

53122

50570

+14

3656

771

732

13888

1*864

W633-

-34919

15997-

27534

+13

1066

585

3239

Z7243

29511

27541

277.99

27894

35

36242

+0.7

3455

660

- 868

1029

16263

16390

16731

16556

332.09

+05

2198

820

533

32961

BUI

334J5

33790

26243

39

268.43

+83

633

579

3135

outrt.

27109

20992

20227

ssm

25024

+03

13.74

665

(LSI

24949

25432

25744

25558

23992 .

mas

-03

3335

6.96

873

335.90

757.75

34L90

34529

29927 :

1IR«

—02

1574

545

720

1(057

17490

1S490

10429

54006

+85

2035

755

602

54UB

55U3

56398

57293

55989

46

Mb^WinnMUK (44)

w*

+0.9

.3167

583

_3ft44_

319.49

CT«

33231

33475

29509

GMWP (487)

32185

+0JB

535

31928

32556

32520

29982

51

73402

+0.4

2233

834

532

71132

71123

35477

71691

35744

32920

3070

75196

33531

99_

500 SHAKE. INUfcX --

2 OJW

+U>

_

6.96

__

240.64

24453

24620

24925

2056

26734

+2.4

38.99

851

221

26U8

2G75B

ZA34

27967

26962 •

223.77

-03

‘ J-

1039

—

22454

22598

24032

20922

26636

+16

_

627

—

261.95

26595

26547

Z7986

26676

6b

15042

49345

403

541

mm

WK

15350

15453

17913

+03

1142

526

1199

48959

48764

48530

49733

39499

68

Merchant Banks 02)

335.99

+03
+04 .

551

18.70

634

593

699

2425

638

13554

487J2

VOM

13937

aww

16696

HLBO

<1440

16735

142.73

41745

way

16505

473-39

10236

69

71)

Property (49) — ■ —

Other Financial 05)

408.92

363.77

71

Investment Trusts QlDj —

20839

176.70

+06

+43

1768

566

7.98

709

26940

39434

17930

38251

245J6

91

nuenMM Traders 08) ■

... w.MMMncvncm

333.96

+23

+0.9

1534

959

607

«i a

32729

32052

311 IB
38127

33725

32693

35046

33975

4BJ9

32907

FIXED INTEREST

PMCC

INDICES

Tues

Me

22

Mon

Jane

21

ts-

to date

[MNi'fiMnrad

Din

+931

DUO

—

5.9

nan

-rfLTS

19582

6.9

mu

+938

13279

a

7M

4

luteiinnMrr -

D7J89

+982

11693

630

5

•MStelB

DL71

+962

Hi

679

8034

+932

u

ma

R

1 — N

EM

-

3.42

AVERAGE GROSS
REDEMPTION YIELDS

Low •
Coupon*

Mgb ■

Coupon

hwdemnte-

5 yews..
15 yen.
25 years-
5 yews-
15 jeart.
25 wars..
S

15 yews..
25 FK.

Drift ft Long 5 **1

. 15 years.

25 yore..,— . — |

Toes

Jane

22

Ha-

uls

1229

sh

BM

132S

1362

MM

-33At

3255

3478

MGS

3AS

It 1588

Jane

ZL

•njr

u»

. 12,97
B.%
U%
33 V
33.96

3A15
12 U

MM

M78

Mtt

1502

3225

1286

3229

PLSL

IAS

MU

MOT

MM

3437

1226

1527

1527

1527

15fi7

is assss»^

NEW HIGHS AND
LOWS FOR 1982

The followlne quotation* In the Share
Information Service yesterday attained new
Highs and Lows for 1982.

NEW HIGHS (14)

BEERS (11
Young Brewerv "A”

„ CHEMICALS M)

Anchor Crvem.

ELECTRICALS (1}

Whitworth Elc:.

_ , ENGINEERING (2)

GEI Int. Mitchell Somers

INDUSTRIALS (3)

Haroreavec WtHtacroft

Scottish Heritable

MOTORS (2)

Gen. Mts. Units Braid Group

PAPER (2>

AID Delyn Packaging

TEXTILES (1)

Stirling Group

OIL AND GAS (1>

Shell Trans port 7pcPi.

NEW LOWS (118)

AMERICANS (4)

CANADIANS (IT)

RANKS (21
BUILDINGS («

DRAPERY AND STORES (5)

ELBCTRICALSCS)

EERING (2)

INDUSTRIALS^^)

MOTORS (2)

PAPER (3)

PROPERTY (S)

SOU TH AF RICANS (1)
TEXTILES t2)

TRUSTS (8)

< OIL AND GAS m
■ OVERSEAS TRADERS (11

vmw

RISES AND FALLS
YESTERDAY

Rloea Falls Same

British Funds 87 — 14

Carpfis. Dom. and
Foreign Bonds ... 24 3 50

Industrials 279 200 864

Financial and Praps. 105 65 340

Oils 24 23' 82

Pi solatium) 2 2 19

Minos 35 58 86

Others 28 67 56

'Totals B84 618 1.461

V OPTIONS

ftrpt . Last Last For
Deal- . Deal- Declarer Seftle-
infis ing5 tion ment
May 24 June 11 Sept 2 Sept 13
June 14 June 25 Sept 16 Sept 27
June 28 July 9 Sept 30 Oct 11
For rote indications see end of
. . Share Information Service
Stocks to attract money for
the call included First National
Finance, Premier Consolidated,
Trident TV, Hawley Leisure,
Charter Consolidated, Tozer
Kemsley, Rothmans, Stewart
Nairn, Carrington Vlyella,
Acrow A, Polly Peck, RHM,
Bellhaven Brewery and Rio
Stakis. No puts were recorded
but . double options were
arranged in First National
Finance, UDS, Beecham and
Mlnet.

ARGUS PRESS

Communication Channels Inc,
a ' subsidiary of Argos Press
Holdings, has acquired two
monthly international journals
serving the civil aviation
industry — Airline Executive and
Commuter Air.

Both publications have moved
to the CCT headquarters in
Atlanta, Georgia.

APPOINTMENTS

Charter Consolidated changes

Mr Jocelyn Hambro, a director
since 1965, has been appointed
non-executive chairman of
CHARTER CONSOLIDATED. Sir
Philip Gppenhelmer, deputy
chairman, has retired from the
board and Mr J. N. Clarke, the'
chief executive, has been
appointed deputy chairman in
his place. Mr H. F. Oppenheimer
retired from the board and Mr
N. F- Oppenheimer and Mr A. E.
Oppenhdmer were appointed .
directors. Mr Hambro has been
chairman of Hambros since 1970
and Is chairman of the Hambros
Trust, Hambros Investment
Trust, and chairman or a director
of many other companies!

*

Mr Jlh Fallon, MK Electric's
director — external relations, has
been elected president-elect of
the BRITISH ELECTRICAL -
SYSTEMS ASSOCIATION.

* ....

Mr P. C. Meredith, presently'
commercial development

manager of Billiton (UK), has
been appointed general manager
of BILLITON METALS AND
ORES (UK). He will con-

tinue as commercial develop-
ment manager of Billiton (UK).
★

Mr Graham S. Westwood has
been promoted to managing
director of JEAVONS CON-
TRACTING.. He was formerly
director and general manager.
He has also been appointed a
director of Pentos Engineering
Group.

* .

Mr Jeff Pether. managing
director, British Salt, a sub-
sidiary of Staveley Industries,
has .been elected president of
the- CO&GTE EUROPEEN
D’ETUDE DU SEL for a three-
year period: He succeeds Mr
Robert Leroy of Solvay et CJe:
*

1 Mr A. R. Macmillan has joined .
the board, of CALEDONIAN
APPLIED TECHNOLOGY as a
nonexecutive director. He is a
director of Clydesdale Bank. He
will - shortly be retiring as chief
general manager of ' Clydesdale,
but will' remain a director.

*

CAXTON COMPUTER ■ COM-
PANY has appointed Mr John
Wilson as a director. He is a

leading dealer In autograph
letters and historical documents
and a prominent member of the
antiquarian book trade. Caxtoo
Computer specialises in the
supply of complete cataloguing
and information systems- to the
antiquarian trade, particularly
antiquarian booksellers, map,
print, coin and stamp dealers.

★. ■

Mr Dale Stuard, who wishes to
devote more of his time to his
personal business affairs, has re-
signed from the board of
BARRATT DEVELOPMENTS.
Mr John S. R. Swanson, currently
group sales and marketing
director and a member . of the
main board of Barra tt, becomes
chairman, Barr all American Inc.

★

TORVALE BUILDING

PRODUCTS has appointed Mr
Mike R. Andrews as sales
director.

*

. . Mr - Gordon Dibble currently
managing director of Fluor
Nederland, is to become manag-
ing director of FLUOR (GREAT
BRITAIN). His place in the
Netherlands. will be taken by Mr

Slg von Kutzleben who was
assistant to the president Fluor
Europe, Dr Ronald Olivier, and
a director of Fluor Europe. Mr
Dennis Bernbart, the company's
manager sales in New York be-
comes vice president Europe and
Africa sales. Mr Jim Byron who
currently holds this position is
transferred to California to be-
come vice president advanced
technology, and government
sales.

★

Mr Peter Hicks has been
appointed a director of WIGHAM
POLAND HOME in addition to
his main responsibility as
managing director of iWlgham
Poland Motor.

+

Mr John C. Varney, previously
with the Alexander Howden
Group, has been appointed to
the board of ANTHONY LUMS-
DEN & CO. (Lloyd’s brokers).

*

Sir Cecil Clothier, the Parlia-
mentary Commissioner for
Administration (Ombudsman),
has appointed Mr D. G. Allen as
his deputy in succession to Miss
Jean Horsham, who Is retiring.
Previously in the Foreign Office,
Mr Allen joined the Parliamen-
tary Commissioner's office in
1980 as a director of investiga-
tions.

Unfurnished flats to rent in a complete new world.

Thf» Barbican is TirpathtaTKiig. Tmb 7 ;
sheer size strikes you first then its
cd^gance and inventiveness -die
■varied and 1 oi ir'fj lips , the

imaginativehiiman-scalei
the -water and greeneiy. This is
whatJivinginacitycii^httDbe
like.

Ercrn its towers you can see
tfqayypB S LQnid^ERMi i^ -

traffic-free precincts you are only a
lew minutes walk from Barbican
and Moorgate stations. St Paul's is
just a little further:'

This amazing new world is now
complete, witfaite own .
community life, its own shops,
doctomaodentErtainnimt
including the fabulous new Arts
Centre, and all you need for
civilised living.

rinfiimishpd flaftg.'handso me'.
quiet and spadous. are available
at rents from £3,000 to £24.006 a
yeac^ They all have luxuriously
fitted kitmens. gray phones,
most have bakonies and staff are
onduty24horasaday.
Background heatingis included
in thfifent Coveted carpark is
available. Company
applications arewdebme
for certain types of flat

'■ Further details from
The Barbican Manages
Barbican Estate Office.
Corporation of London. Bar bican.
London EC2Y SAB: Telephone:
01-628 4372 or 01-5858110.

32

Ctrapatias
sad Harlots

CURRENCIES and MONEY

CURRENCIES

Dollar easier

THE POUND SPOT AND FORWARD

On* month

The downward trend in the
dollar in New York on Monday

continued in European trading
yesterday. Profit-taking and a
decline in Eurodollar interest
rates, after the recent sharp rise,
depressed the U.S. currency,
although any hopes of a
sustained easing pf the dollar
were tempered by disappoint-
ment at the large rise in May
consumer prices.

Sterling gained ground against
the dollar, hut weakened in terms
of most other major currencies.

DOLLAR — Trade- weighted
Index (Bank of England) 120.7
against 121.7 on Monday, and
107.4 six months ago. Three-
month Treasury bills 12.58 per
Cent (11.08 per cent six months
ago). Annual inflation rate 6.7
per cent (6.6 per cent previous
month) — The dollar fell to
DM 2.4540 from DM 2.4770
against the D-mark; to
SwFr 2.0860 from SwFr 2.1290
against the Swiss franc; to
FFr 6.SQ75 from FFr 6.8725 in
terms of the French franc; and to
Y254.30 from Y257.10 against the
Ja panes e yen.

STERLING — Trade-weighted
Index 9L.4 against 91.4 at noon.
91.5 In the morning. 91.0 at the
previous close, and 90.2 six
months ago. Three-month Inter-
bank 13£r per cent (15Bi per
cent six months age). Annual
inflation 9.5 per cent '(9.4 per
cent previous month) — • The
pound opened at SI. 7730-1. 7340,
the lowest level nf th'e day, and
touched a peak nf $1.7455-1.7465
in the afternoon, before dosing
at $1.7375-1.7385. a rise nf 1.10
cents on the day. Sterling fell
to DM 4.2675 from DM 4.28; to
SwFr 3.6275 from SwFr 3.6775;
to FFr 11.83 from FFr 11.8650;
and to Y442.25 from Y444.25.

D-MARK — EMS member
'(weakest). Trade-weighted index
125.1 against 124.7 on Monday,
and 121.9 six months ago. Three-
month interbank 9.325 per cent
(11.15 per cent six months ago).
Annual Inflation S3 per cent (5
per cent previous month) — The
D-mark showed mixed changes at
the Frankfurt fixing, weakening
against sterling, the Swiss franc
and Japanese yen, hut improving

against the dollar. The TJ.S.
currency felt to DM 2.4634 from
DM 2.4890 at the fixing without
any intervention by the Bundes-
bank. Despite the easier trend
of the dollar, market sentiment
continued to point towards a
firmer trend in the near future,
influenced by U.S. Treasury
borrowing, to finance the budget
deficit Sterling rose to
DM 4.2S10 from DM 4.2760. and
the Swiss franc to DM 1.1717
from DM 1.1622.

FRENCH FRANC — EMS
member (second strongest).
Trade- weighted Index 742

against 74JL on Monday, and 80.6
six months ago. Three-mouth
interbank ISA per cent <15 A
per emit six months ago}. Annual
inflation 13-9 per cent 114.1 per
cent previous month) — The. franc
gained ground against the dollar
at the Paris faring, for the first
time since the devaluation of
the French currency within the
EMS on June 12. The U.S. unit
has risen to record highs at each
successive fixing, but fell to
FFr6.8350 from FFr 68960

yesterday. The franc was also
fairly steady in the EMS. with ‘
The D-mark rising only slightly
to FFr 2.7750 from FFr2.7740.
Sterling rose to FFr 11.8750
from FFr 11.8630 at the fixing,
and the Swiss franc to
FFr 3^515 from FFr 3.2247.

DUTCH GUILDER — EMS
member ’(second weakest).
Trade weighted Index 1185
against 116.3 on Monday, and
114.1 six months ago. Three-
month interbank 9 per cent (11}
per cent six months ago). Annual
inflation 6.4 per cent (6.6 per
cent previous month) — The
guilder eased slightly in the
EMS. and remained the second
weakest currency yesterday, but
improved against four of the
ether six members of the system
at the Amsterdam fixing. The
D-mark rose to FI 1.1009 from
FI 1.1006, and the Irish punt to
FJ 3.7920 from FI 3.7S40, but the
French and Belgian francs, lira,
and Danish krone lost ground.
Outside the EM'S, the dollar fell
to FI 2.7120 from FI 2.7395, but
sterling rose to FI 47180 from
FI 4.7090.

U.S. 1-73304.7416 1.7375-1.7385 0JM4*e 41a
Canada 2.2460-4.2560 2^640-2-2350 0A4-0.94c di*
Nothlnd. 4-68-4-73 4.70-4.71 IV IV: pm

Belgium 81.1042.10 81.15-81.25 22 -32c dis

Denmark 14.7f-14.8Z 14.73-14.74 3V^f4ore dis

Ireland 1.2390-1.2475 1.2405-1.2415 0.62-0.75p dis
4,25-4- 29*1 4.25V4.Z71# IV-l’spf pm

IVIVspm

22 -32c dls
3V-4 3 toro dis

Portugal 144:00-148.00 HG.OO-14S.EO ao-MSc di*

5 asm 191.70-193X0 191 .80-192.00 10O-23Oc dls

Italr 2^403-2.475 2.404-2.408 13-18 lire di#

Norway 10.S8-10.S2 10-8SV10-87 1 * 1 iore P<n-% dls

Franca 11.82-11.91 11.82*^11-934 3^.-5^ dla

5 wad Bn 10-57-10.64 10.58-10.69 1V2Wa di*

Japan 441^*46 441V442V 2-40-2. lOy pm

Austria • 30.00-30-25 30.18-30X9 14-IOgro-pm

Switz. 3.62-3-6B 3.B2V3.83S 2V2&pm

% Three
pj- months
—262 1.25-1. 3Sdls -
-4.74 3.77-2.87614 ■
4.14 5-44 pm
-3.99 84-94 d* -
-3.ZS 12%-14 dl* -
-6.62 1.91-2.08diB -

H22 4Mpn
-14-25 23S4G5dis -
-13.13 635-64Sdls -
-7.23 48-49 dJ*
-0.21 5^-6 r B dla -
-4X1 13-16 dte
-2.27 41,-5 dis
8.10 6.70-6.40 pm
4.77 35-29 pm
7.44 8>4-6>. pm

Belgian rata is for convertible francs. Financial franc 91.25-91.35.
Six-month forward dollar 2-62-2. 72c dig. 12-montii 4iS-4.75c dia.

THE DOLLAR SPOT AND FORWARD

Jana 22 spread Claw

UKt 1.7330-1.7485 1.7375-1. 7385"
irelandt 1.3330-1.4020 1.4006-1-4020
Canada 1JB55-1X995 1.2955-1.2960
Nathlnd. 2.7000-2.7185 2.7000-2.7030
Belgium 48 -7B -47-20 48.71-46.73

Denmark B-4575-8.S300 8.4576-8.4626
W. Gar. 2.4460-2.4710 2.4535-2.4545
Portugal 82.75-83X0 83.5043.75

Spain 110.70-717 JS 171190-11025

Spain 110.70-11 US 17090-110.85
Italy U82-U80 U82-U83

Norway 6JS00-6.Z730 6,2500-6.2560
Franca 8.7860-5.000 6.6060-6.8100 ,
Sweden 6.0900-6.1200 6.0900-6.0930
Japan 253.75-256.60 254.25JS4.35
Austria . 17.31-17.38 17.31 **47.324

Switz. J 2.0750-2.1170 2.0B55-2.08S5
t UK and Ireland are' quoted In U.
discounts apply,- to ths U.S, doll*

% Three %

One month p.s. months p-a.

0.33-0A3C dla ->2.62 1-26-1.35dls -2-99
0.55-0A5cpm 439 U0-1.15 pm 3.51

OJt2-OJ5a dis -2.18 0.60-0.64dis -1.91
U5-T^Sc pm 6.86 4.75-4.® pm 6JS
56c dla -1.15 19-19 dis -1-45

OJO-OASoredha -0.48 OAO-OJ0dls -0.31
1.38-1.33pf pm 6.62 4.20-4.15 pm 6.80
3O-130c dis -11.48 70070 dis -10.52
96-1 10c dla -11.08 235-285 dis -9.01
6V8 lire dis -4.87 16V18 dis -4.98
0.904L50ore pnt 1.34 0.70-0.30 pm 0.32
. 0.50-1 .00c dis -1X3 2.6Q-3.10dls -1.65
paNIJOorB dis —0X0 2.40220 pm 1.51
1.86-1.78ypm 8J9 5.66-5.45 pm 8.65

nVIO'jflro pm 7.70 33**40**pm 7.38

1X0-1 .72c pm 10.12 5-25-5.17 pm 9.99
.S. currency. Forward premiums snd
ir and not to tta b individual currency.

CURRENCY MOVEMENTS CURRENCY RATES

Bank of

Morgan

June 88

England

Guaranty

Index

Change^

sterling-

91.4

— 32.2

U.S. dollar.

120.7

+ 12.7

Canadian dollar,...

84.7

-22. D

Austrian schilling..

117.1

+ 25.9

Belgian franc--

95;0

—12.

82.5

— 14.6

Deutsche mark..,..

325.1

+49.7

X4B.7

+ 97.0

116.5

+24.0

74.B

—19.7

Ura..— -

Yen

63.4

132.6

— 58.7
+ 25.5

Sank Special 'European
rats Drawing i Currency
% Rights , Units

Stalling ! - jO.638117

UAL. J 13 {1-00129-

Canadian s n |16.59 *

Austria Soh- 6*4 18.9625
Belgian F.....I 14 151.4107
Danish Kr...J 11 0.29779

D mark. i

Guilder. [

French Fr....l

7 la I 2.68828

8 i 2.95058
gig 1 7.45897

Lira. I 19 (1613.55

Yen 5 la 379.370

Yen

Norwgn. KrJ
Spanish PtaJ

OTHER CURRENCIES

Swedish KrJ 10 6.67815

SWISS Fr J 51* 2^9653

Greek Or'chJ 20i*J N/A
PCS/SDR rata far Jons 21:

6.84548

121.240

0.651686
1 0.959383
; 1.24144
1 16.6597
1 49.1869
1 8,15954
, 2.56248
; 2.60088
6.55354
< 1320.42
1 244.646
1 6.01846
106.511
6.85895
2.01768
66.6048

EMS EUROPEAN CURRENCY UNIT RATES

ECU

central

rates

Currency
amounts
against ECU
June 22

1'. change
from
central
rate

% change
a djuated for
divergence

Dhreigaflce
limit %

44.9704

45.1869

+0.48

+0.35

-1-1.5501

8.23400

8.15954

-0.90

-1.03

±1.6430

2.33379

2.36248

+1.23

+1.10

±1.0888

6.61387

6-55354

-0.91

-1.04

±1.3940

2.57971

2.60088

+082

+0.69

±1.5004

0.691011

0.687236

-055

-0.68

-1.6891

Italian Lira

1360.27

1330.42

-1.47

-1.47

±4.1369

Argentine) Paso. J26.581-86.621
Austral laDollar...; 1.7005-1.7025
Brazil Cruzelro...l284.69-898.69
Finland Markkas 8.236.BJ51
Greek Drachma^ I19.t68-110.B94
Hong Kong Dollar 10.346-10.36

IranRial j 145.50*

KuwaitDinanKD), 0.50 ISW). 50265
Luxembourg FrJ 81.15-81,26
Malaysia Dollar 4.110-4.1170
New Zealand Dir. 2.3368-2.3405
Saudi Arab. Rlyal 5.9730-6.9830
Singapore Dollar 3.76154.7685
Sth. African Rand, L871 5-1.9735
U.A.E. Dirham....! 6.3B55 -6.4065

15.250-15.300
9.9766-0.9771
169.08.169.93
4.7405-4.7425
69. 30-69. 80
5.9340-5.9590
84,60*
O-2M0-OJM1
46.71-46.73
8.3575-2.3605
1.3420-1.3425
3.4290-3,4305
2.15758.1606
1.1345-1.1366
3.6715-3.6735

Austria.. ...i

Belgium

Denmark

Franco

Germany..-

Italy

I Japan.

Netherlands .....

Norway.

Portugal -

Spain,... — ......

Sweden

Switzerland.. „.
United States.... i
Yugoslavia^ j

30.00-30.30
SOU-91 U
14.71-14.86
11.82.11.92
4JI64.30
2375-3415
445460
4.694.74
10.84.10.94
143-158
185 5 i-1925*
10.57-10.67
3.65-3.69
1.73-1.75
90-104

Changes are lor ECU. therelore positive change denoteB a
weak currency. Adjustment calculated by Financial Times.

EXCHANGE CROSS RATES

'Selling rite.

Pound Stirling! U3. Dollar | Deutsciiem'kjJapancseYenjFrenchFraiicj Swiss Franc | Dutch Guild' j Kalian Lira

Dollar, Belgian Franc

Pound Sterling
U.S. Dollar

Double hemark
Japanese Yen 1.000

French Frank 10
Swiss Fra nc

Dutch Guilder
Italian Ura 1,000

Canadian Dollar
Belgian Franc 100

1.609 2.087

4.467 8.794

FT LONDON INTERBANK FIXING (1 1 .00 a.m. JUNE 22)

3 months U.S. dollars

6 months U.S. dollars

bid 161M6 1 offer 16 Si 16 ( laid 16 1/4 | offer 16 SiB

The fixing ret as are the arithmetic oi sens, rounded to ths nearest one-
sixteenth. of ths bid snd offered rats lor SlOra quoted by ths market to 6ve
reference banks at 11 am each working day. Ths banks are National Westminster
Bank. Bank of Tokyo, Deutsche Book. Banque Nationals do Paris and Morgen
Guaranty Trust.

EURO-CURRENCY INTEREST RATES (Market closing Rates)

Throe months.. —
Six months

Sterling

UA

Dollar

Canadian

Dollar

Dutch

Guilder

Swiss

Franc

—

D-mark

Frenoh

Franc

Italian

Ura

Belgian Franc
Conv. Flit.

1

X2>«-125t

12}J-18r»

13-18*

13tV-}31 B

1318-131*

14>a-143s
14SS-144*
lfrtr-lBrt
16ii-15f*
16 16U
lorg-iein

171*481*

161*471*

17i*-l78*

174*48

17S*47T 8

1748471*

ais-as*

81*84*

a^-BS

era 9
91*-9U
«!*-»*

2-84

101*404*

Bsa-BS*

6-6*1

IS

B4-aas

Bl*-88e

87S-9

9 91*
2*8-914
»a*-9«*

16as-l6r 8

15*1-16
16*4-165*'
17 If 18
lB6fl91s
184*-19*4

ia*s-l«H

18l*-19»*

19 8* -20 Is
20S*.2Ms
2198-28

217* -221*

14-151*

16- 17
16*4-17*4

17- 18
174B

10 If 17*1

14*4-161*

344*461*

15*464,

134*4&ti

lOSflBft

164*49»

20-21 h
17-181*
16Ss-18ie
lB<k-lffri
184-195*
18Ift-195a

SDR linked deposits: one-momh 1ZOu-13*» per cenc three months 13*fl3r» per cent six months per cent: one-yeer 13V14 per cent.

ECU linked deposits: one-month lZS»-12“ii per cant; three month* 13434* wr cent; six months 134|*43H|» oer cant: on«-yaer 13V13A por eairt.

Asian S fciosma rates m Singapore): ons-manth 1SV1S*n per cent: three month* 16V 16V Percent: six months IBV’G’u percent; one-year 16-16V oer cent
Long-term Eurodollar two years 15V1B par cent: three years 1«**18 per cent; four years ISVWe ver cent: five yssrs iSVIff* per cent: nammel dosing rates.
Short-term-retes are ea« for U.S. dollars. Carta than d oilers end Japanese yen: others two days' notice.

The I o*t owing rates were quoted far London dollar certificates of deposit: one-month 14.96-15.00 percent; thras-monttis 15.40-1550 per cent: six months 15.70-
15.B0 per cant: one-year 15.70-15.80 per cent.

MONEY MARKETS

UK rates little changed

UK clearing bank base lending
rate 12$ per cent (since June S)

UK rates showed, title overall
change yesterday as the market
waited to see bow U.S. rates
would move. Current uncertainty
was reflected in the flat yield
curve shown by most paper from
three months out to one year.
Short-term rates were mostly
little changed with one week
interbank money at 121-12; per
cent compared with 12^-121 per
cent. In the overnight market
funds opened at 12J-13J percent
and eased' to traded between 12
per cent and 12$ per cent.
During the afternoon rates
touched 12} per cent before
easing to Hi per cent with
dosing balances taken nearer 13
per cent.

The Bank of England forecast
a shortage of £100m initially with
factors affecting the market
indodins bills maturing to

MONEY RATES

NEW YORK

Prime rate

Fed fund* (lunch-time) ,
Treasury bills (13-week)’ ,
Treasury bills (20-woek) .

official hands and a net take up
of Treasury bills — £2 67m, partly
offset by Exchequer transactions

+£90m and a fall in the note
circulation oE £70m- The forecast
was revised to a shortage of
around £150m and the Bank gave
assistance of £36m by purchasing
eligible bank bills in band 2
(1&38 days) at 12$ per cent
Later In the day the f oreca st
was a gain revised to a shortage
of £2 00m before taking Into
account the morzuag’s operations
and the Bank gave further help
of £152m. making a grand total
of HSSrn.

The afternoon help was made
up of purchases of eligible bank
bills; £SBm in band 2 at 12} per
cent, £65m in band 3 (34-63
days)' at 12| per cent and £21m
in hand 4 (64-S4 days) at 13}
per cent

In New York the Federal
Reserve Bank injected Slbn of

LONDON MONEY RATES

liquidity through customer re-
purchase agreements with
Federal funds trading at 14 per
cent. There was little overall
change in rates although buying
interest increased after the
recent upward trend in rates as
the market paused to re-assess
the recent Sharp rise in interest
rates.

-In Frankfort call money
remained at 9.05 per cent, reflect-
ing tight market conditions. This
was also highlighted by an
increase in borrowings under the
Lombard facility to DM 6.2bn on
Tuesday np from DM 2L0bn.
Liquidity is likely to remain tight
for the rest of the week when
corporate tax payments should be
completed. In addition today
sees the unwinding of some
DM l)-2bn currency swaps which
unless replaced, will reduce
liquidity still further.

EUROCURRENCIES

$ rates ease

f

Euro-doUar rates tended to
ease yesterday as the market
paused for breath after the
recent sharp rise. The pause
reflected concern over recent
speculation that the U.S.
authorities may be contemplat-
ing some change in monetary
policy hi tiie face of growing re-
solve by European central banks
to take concerted action to halt
the dollar's recent sharp rise.
The consequent fall in Euro-
dollar rates was re fl ected in the
dollar's performance in the for-
ward market where it showed a
narrower discount against
sterling. The D-mark showed a
narrower premium against the
dollar as interest differentials
narrowed as did (he Swiss franc
and yen.

Financial Times Wednesday Jane 23 19S-

FT UNIT TRUST INFORMATION SERVICE

frtrv?

fill

*rrf

i«

13V14J »

12.EB

134»

. Starling
1 Certificate
I of deposit

GERMANY

Lombard ....

Overnight rats

One month —

Three months

Six months

FRANCE

Intervention . rats -- -

Overnight rate

One month

Three months

Six month*

JAPAN

Discount rare , —

Cull (unconditional)

SHI discount fthree-montiij..

I Local Local
Interbank j Authority nosed
! deposits bo

lUt-lS 12U- 181*

— 33U-I2BS

UGs-lST* 22SB-1ZM.
12rt-12tt 124*

12TS-U —

13 13 Is 12Ts

at Autii- Finance 'Discount' ; eligible l FIhb

lotlsbls House Company Market Treasury i Bank < Trade
lends Deposit*- Deposits . Deposits ■ Bills* ■ Bills* I Bills*

— 112 1«- 123*1 11-121*' —

23-13A
i3*-ij»4 :
1318-13* j

131*4 5 is
131*131*
15 4*- 13
12V121S
159* -13
131*-12fe

12 ±5 IS*

a* \U if 8

— 1 2*4-221* 123

Overnight - 1U»-W J5r*?S2 " “ - - -

Sdsysnotiee^ ■— — ISU-lSag •- “ ~ ZT H ~ ~

iSSSIhm" ~ 12S.-12T. lais-lZM — — - 13-131*. 121* — — —

OnVMrth lSTs-18 9 * 12«-ia+» 124* 131*451* 133s 1SU 121* 12 5 12# IS*

SsjSte “.tils “til^ rn. gty; if* iih 113 JSmJH II"

SrS= sffi S-RST-S = r = - - 3

One year 13127# 151 b- 13* lSiviar* 13* — — — — —

Lcmt euthoiibes end Ansnce houew smn daye* nctroe, othera men dsys fired, long-term Iocs! authority mortgage
rates. notrimsBy tins# year* 13»* jwr cenc lour ysare.l3»* 'yer jcp ^ fn nt roar^ t3t. per c e»n. « Bank WT ratai »n taWo
are buying rates, tor pnme paper. Bumns ntn ter four^oontb bank bMa 12% car cane four months trade b>U* 13 per

“ nt Aftoroxrms«a rats for otw^iontt Treasury bto 1»% wo months 12^ per cent; dins months

12*1*-! 2V, pqr cant. As»prtrelmate eebmg tsts for one-month bank ball* 12>t-l?» oar cent; tw months 12i4r12% per
cant and three months 12%-IA P«r can* ons-monrfi trade- bills J2*%* per cenc two mcnibs 1*% per cent; three mo run a

1J4 Fwto"h W)M Base Rites (published by the Fmsnee Houses Association) 14 per cert Iran June 1 1SB2. London
and Scottish a wring Bank Ran* tor lend mg 124 P*rx.«- lond ew €**** ".« R * T * 3 ,or * um * «

days' nnrice 94 oar cent. Treasury Bills: Average tofldfriatas tit dieount 132*25 oer cent.

Certified iaa of Tax - OnposM (£er»« 5J 13 per sent ft cm June 8, Departs wtndraiw for cash 104 oar cent

(0-386*406

i - m

r-~l . .*-~TTi \ ‘ ; si •. > r 1

m

m

■ mm

i- •»!

m

m

feti

SpSC

HfflK

r/-CilT*

ti uiuindnre il

f&JBl -0-U 225

&.T. IMt

&.I A. That

5DS33 3S

' ». ■ ■ p rr

BxNng Srotiien A Co. CM.

8, Bhhopegaie, EC2NBAE. 0I-2B38BB

iaas^dai . -adi a

IMt Trust Mmk UdTaXcXl)

M FMd U toisiMJ (»Ke)
Wra.KfcBWfa5L.EC4. Ql-6234961

gs«5riRirfSx iJSLs&B.

•rtt-ratoep. of IMtTMs LU. WCcXf)

p

1 *

hrnw~TTfrrr , iMMar

h ,F Yi lJ T^- ,lb ""gW

Gantt (JWJ

77 London WML

iulvrd
Hv|ir-J

■* r !

tr.i

. Iff -M *-•! ■

SJZSGZSZL

StofesssPrzi

Bream Tliipley 4 Ca LUL (aXg)

IWM Hw. toffdi H7A SxTo«4458Q44.
BS. Units June 22— (74.9 2914) J bJtt

^rrar ttlneoi we M ?jj|

BrsMfcietL

Capef (TmgQ IU, U4
lD^ tM Breed St, 01-58B6C10

.11 1

Carr, Setag (Mt 7 met MMgonQd

STUB. PrtneessSt, ttandrelsr 06W36SM5

Cent BtLef Fin, ef Cburefa of Eijfwidjr

77 London WM.EC2N 108. 01-5891815

■ mm

Cfcarmca Onrittet N/R Farat#

15. Moorasr*, London, EC2. OlrfiM <123

m IzdSB

Cbarifia# OTflcM tweet FM»

77LmmMM,EC2N10B. 03-5883815

iszsi& 2 =i m \=i i* sssr

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ras:i|

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priitViVj
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Bff.T

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Pi,

fe

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p/

fr

t. ]

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m

HU"

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; I

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SU»4aehiilsr. 06M3656R5

m 1^1

■ fMi Mat iM. W
raWttAllS^ 01-3920282
PB5 S2£| -*2J| 450

BSD. • 01-248 <984

i-t*

ftatarraraEcaa

24BL

\r^r

1^1
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Eki |

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o-rtstrtrGitiAR

.. , .... v.‘<S J *

If

FT SHAME INFORMATION SERVICE

® "T

-'Tvl „ I

m i»i i

' ■ LOANS — Continued

1982 | L Wtt l+w|

ms

wi»«r » i *■ t-i

w-l M.

Financial

lOfljl 9Sz |FFJ14BC«3 -• 1 ' 99J* (-J. 1

14.001 1418'

BANKS & H.P.— Cent

.1 ** umbUbi

ter

7T

m lo*

Da 5pc Pm.
ChiteanMetJ

IT

Tier

m 1

1 1 -...U . . ir _

rwmOnJS 799 mm*.

HiBSamnd.™

HongShnoC^O

SSI

TM’itfc

0i

1982

HW Uv

urin Wjpc 1984.1 DM87

AMERICANS

I Price 1* n) Dh.
£ I - Eton

641 1168

+4 |2307| 13U

Over Fifteen Years

112341 1328

tf.

m

1 26

1 236
327
Z75 '

1

5

116
61
146
54 45

65 47

23 9h

So ^

154
m« i
144
117

9.T B I 13

4.9 43 I 28

33 470
5.6 66

HNt

9.7 ^

114 24 1 20

4 J 105 73

93 66 1 48

9.6 62 42

6.7 132

3.1 550

191 180

I 50 38

63 29

tUA

43 111
50 980
10-9 m

8 8

43 31

63 72
333 55
| 6-7 77

52 280
10.4 266
141

150
120

135 .

87 56

,rr

a
180
107
94
158
2

113 ^
,93 a
fc-9 136

Hi JE

123
12.4

7.6
143

8.9
34
13 3
80

li 76 .

K 343

T *

5.7 im
i7 £26%

29
119
45
178
172
100
94
38
48
143
134
• 82 163
40 28

Iff. 15.
76 56

169.

345
253
118
327
58
188
230
43
88
3S0
73 157
61 43

48 I 36
?&

92
24
27
122
lZfe
200
129

*f|

125

V.

104
*360
108
176
172
140
115
75

u i£

29 j 29
31 *7

'Z18
53i
178
100

TRAIL BLAZERS

“When considering our company's
expansion plans, we looked at many
arses throughout the country. Our final
decision to choose Denbigh resulted from
the excellent help we received tram
Qwyds Industrial Development Division
and the other Industrial Development
agencies.”

"We found an ideal factory, with room '
for expansion. This, coupled with our
ability to recruit skilled staff, and the

various financial incentives that are
available, convinced us that CJwyd was
the ideal centre for our operation "

Angus MacKinnon, General Manager.
Branelea Ltd, (a subsidiary of Pifcmgton
Brothers PLC).

AH the benefits of moving to Ctwyd are •
succinctly summed up in this message.
For new and growing enterprises through
to major established manufacturers.
Owyd works, day in, day out. In the last
four years over 200 companies have
chosen Ciwyd.

Branglea know why, and we'd like you
to know too.

Our highly dulled and trainable
workforce, with an outstanding Industrial
Relation's record are as important as the
new motorway and dual carriageway link
to the national motorway netvrork- 15m
consumers are just 2 lorry hours away.

Above all, financial incentives equal to
the highest available anywhere in
mainland GB.. are the key component in
the Clwyd package.

in helping you we promise positive
attitudes, without red tape.

141j

w
im
181
t,n*2
141
195

44 [36

167 84

47 i 79

147

44

45
63
29

3®

580
550
196

41 123

_ 625
■H* 0.44
+2 525
-4 *4.48
-2 25

' 33

I

rl

t:

**
58
304

u£r

58
V
44
13
29
268

PaWslDpl 42
777
23

1“
125
74

Caoptr-NeM

•34 Mi

I

Ea

. «
61 (53
154132-
74 57

27 DowBngftlUqi 37h
15 Dreamland 10p. 15

300
198
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All the facts are in our colour brochure. For your copy, contact Wayne S. Morgan,
County Industrial Officer. Clwyd County Council, Shire Hall, Moid, Owyd.

Tel. Maid (0352) 2121. Telex 61454.

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ACTION ‘COULD RESULT IN BIG LOSS OF JOBS’

BR warning on planned strike

BY PHILIP BASSETT. LABOUR CORRESPONDENT

BRITISH RAIL yesterday
spelled out the ** appalling ”
costs to the railway industry if
the strike threatened from
Monday by the National Union
of Xtailwaymen goes ahead.

Bit's warning of cuts in jobs
and services came as talks
between the BR board and its
three unions failed to produce
an agreement to avert the
strike. But BR seemed to have
made concessions on some of
the key product! vity issues,
which it has agt for linked to its
pay offer of 5 per cent from
Seotemher.

Its message amplifies the
letter sent last week to all rail
workers by Sir Peter Parker,
BR chairman, warning that the
railway industry was at risk
from the threatened strike.

Mr Bob Reid. BR's chief
executive, called the threatened
strike “ madness." If the BR
board’s pay offer oF 5 per cent
from September were rejected,
he said. “ the consequences will
be appalling/’

Writing in BR’s- " Railnews,”
which is widely distributed
within the railway workforce,
he said the sue and scope of
the railway network was

threatened by the strike. The
effect on the passenger busi-
ness in particular would be
11 drastic." In detail, he warned
that;

O Some inter-city routes w ould
be closed and a 25 per cent
reduction in services would be
“ inevitable.”

O Job losses could approach a
total of 10 per cent of BR's
250.000 employees.

• Some rural services would be
ended.

• Some marshalling and freight
vards would not be reopened
after a strike. Freight activities
would be greatly reduced, and
parcels depot rationalisation
would follow the expected large
scale service withdrawal from
the business. The Post Office
letter contract was likely to be
lost.

• There would be a " substan-
tial effect” on such support
systems as workshops, main-
tenance. administration and
research and development.

Mr Reid said:’ “ The scale of
loss clearly depends on the
length of a strike. I want to
make it plain, however, that
the consequences I have set out
are likely to occur even with a

strike of short duration. A
longer stoppage would only
make the consequences even
worse.

•* None of us would be return-
ing to the same industry. Many
may have no work to return
to."

There were suggestions that
either the Advisory Concilia-
tion and Arbitration Service or
Mr Len Murray, TUC general
secretary, might be called into
the railway dispute fallowing
the failure of yesterday’s meet-
ing of the Railway Staffs
National Council to reach an
agreement.

At that meeting, however,
BR put forward a number of
compromise proposals on three
of the six productivity im-
provements it is seeking. These
will be formally put to the
unions by letter today though
it was unclear last night how
far they would prove accept-
able.

The most significant seemed
to be on the vexed question of
more flexible work rostering. BR
has offered to set up experi-
ments, one in the north and one
in the sooth, with its own ros-
tering proposals for drivers

tried In one and the proposals
of the Associated Society of
Locomotive Engineers and Fire-
men in the other.

This appears to be a signifi-
cant move away from the hard
line insistence that the rosters
be imposed, possibly by July 3.

Other compromises Include
the manning of freight trains
and the single manning of pas-
senger trains — the issue, apart
from the size of the pay offer,
at the heart of BR’S dispute with
Che NUR.

The single man ning issue has
been . brought to a head over
the NUR’s refusal to agree to
BR’s proposal to remove all
guards from the newly-electri-
fied Bedford-St Pancras service.
The NUR is suggesting that the
guards should act as train super-
visors, collecting fares with
stations left unmanned.

The board repeated a suggest
tion rejected by the unions last
week that the line should be
worked from Bedford to St
Albans on the basis of the NUR
proposal and then- from St
Albans to London on the
board’s.

Strike may hit Tubes
again, Page 13

Dollar
slips
from its
peaks

By Paul Taylor

THE DOLLAR’S recent sharp i
rise ran out of steam fax London !
yesterday, allowing . all the-'
major European currencies to
claw back some of their losses
of the past fortnight.

The .pound closed LI cents
higher in London, at $1.7380:
compared with its Monday night
London close, having touched
$1.7460 at one stage and con-
tinuing a recovery begun in.
New York on Monday after the
London market closed.

Its Bank of England trade-
weighted index against a basket
of currencies improved , to 91-4
from 91.0 despite some weaken-
ing against other major cur-
rencies

The break In its rise was
widely attributed to profit-
taking after the recent rapid

the lex column

A firm defence

Workforce Turkey guarantees $625m bonds

after Banker Kastelli collapse

puts AEG
strategy
in turmoil

By Kerin Done in West Berlin

PLANS for a big restructuring
of AEG-Telefunken, the ailing
West German electrical and
electronics group, have been
thrown into turmoil by the
opposition of the workforce.

A four-mati delegation, includ-
ing Herr Heinz Diirr. chief
executive. Dr Hans Friderichs.
supervisory board chairman and
chairman of Dresdner Bank,
and two representatives of the
company's 123-000-strong work-
force, is to lobby Bonn in the
hope of attracting a direct state
shareliolding in the existing
AEG-Telefunken concern.

The approach to Bonn is a
compromise after a fiercely-
fought supervisory board meet-
ing lasting into the early hours
yesterday before the start of
the group’s annual meeting
here.

Workforce opposition pre-
vented the supervisory board-
on which employees and share-
holders have equal representa-
tion with the chairman, a
shareholders' representative, ,
bolding the casting vote — from
giving unqualified support to
the far-reaching restructuring
strategy "AEG-83 " put forward
in recent weeks by the
executive board.

The opposition to Herr Durr’s
plans comes from the group's
internal works councils, chaired
by Herr Hans Rubke, and has
the support of the two main
AEG unions, IG-Melall, repre-
senting engineering and metal
workers, and the white-collar
DAG. . ,

The management’s survival
blueprint calls for splitting the
existing concern into three
separate units, a hol ding com-
pany and two operating com-
panies: AEG-Techmk for capi-
tal goods businesses and AEG-
Konsum for household
appliances subsidiaries. The
loss-making consumer elec-'
tronics interests (Telefunken)
would be largely disposed of.

The. workforce bitterly rejects
the break-up of the concern and
plans to bring in General
Electric of the UK as a 40 per
cent shareholder in AEG-

Tectmik.

Close to 5.000 AEG workers
—nearly half the Berlin-based
workforce — demonstrated
yesterday outside the company’s
annual meeting.

The opposition is a serious
blow for management particu-
larly following last week’s deci-
sion by AEG’s 24-member bank-
ing consortium to support the
strategy at least in principle.

Hem Durr told AEG share-
holders yesterday that he still
saw little hope of Bonn agree-
ing to take a substantial direct
shareholding in the existing
AEG group. He repeated his
belief that only a radical re-
structuring could, save the
company.

AEG abandons bope of pipeline
deal. Page S- AEG races against
time. Page 29

' Continued from Page 1

BY METIN MUNIR IN ANKARA

THE TURKISH Government
moved yesterday to restore
confidence in the financial
system by guaranteeing the
S625m (£360m) of outstanding
bonds sold to investors by
Banker Kastelli, the country's
biggest money-broker and
securities house, which collapsed
on Monday.

At the same time it promised
to take measures that would .
make it easier for banks in
difficulty to borrow from the
central hank, and urged people
not to panic.

Police and troops were posi-
tioned outside the branches of :
Banker Kastelli before the
authorities closed them down i
and took control of the group's i
assets later in the day. There i
were queues outside other
money-brokers, and at least one i
bank branch was obliged to close l
its doors. Three other banks i
are reported to be in difficulties, i

The collapse of the bank, J
whose founder, Mr Cevher ’
Ozden, is believed to be in i

Switzerland, shocked the
Turkish financial system. It
could constitute the gravest
threat to the prestige of the
military government since it
took power in September 1980.

Mr Turgut Ozal, Deputy
Prime Minister and Economic
Planning Minister, also stands
to lose from Kastelli's fall and
its impact on his stabilisation
policy based on stem fiscal and
budgetary control.

Mr Ozal was received yester-
day afternoon by General Kenan
Evren, Head of State and Chief
of Staff, who is reported to be
furious about the situation.

Banker Kastelli grew rapidly
in the late 1970s on the strength
of the high returns offered to
investors on securities.

Mr Ozden acted as an inter-
mediary for many large Turkish
banks and industrial companies
in raising funds. He succeeded
in creating a successful channel
for new investment in an era
when alternative sources were
more expensive to borrowers.

Thousands of Turks, hard-
pressed by inflation, placed
their savings with the bank.
Many sold property to take
advantage of the attractive
rates promised by Mr Ozden’s
company. It survived a shake-
out last winter when - many
smaller and apparently -less
reputable money-brokers failed.

On Monday night however,
the . directors informed the
authorities that they were
having problems paying interest
and principal due on certifiates
of deposit issued on behalf of
several Turkish banks last
year. The borrowers were said
to be having difficulty in
making payments on maturing
paper.

The Government's guarantee
covers all securities sold to in-
vestors. but makes clear they
must be held to maturity in
order to qualify. Repayment of
interest and principal will con-
tinue once the company’s
assets, thought to total about
$123m, have been liquidated.

IBM in UK satellite talks

BY GUY DE JONQUIERES

INTERNATIONAL Business
Machines is in negotiations with
British Telecom and British
Aerospace on a plan to use a
new UK satellite to provide an
advanced business communica-
tions service across the Atlantic.

The proposed joint venture
service would begin in the mid-
1980s. It would transmit tele-
phone calls, high-speed com-
puter data and televised video
conferences directly between
customers in Britain and on the
east coast - of the U.S. and
Canada.

It would be carried on Unisat,
a privately financed satellite
backed by BT. BAe and GEC-
Marconi. Unisat, "costing £150m
and due to go into orbit in 1986,
will be designed to beam com-
munications and broadcasting
signals over an area several
thousand miles wide.

IBM is expected to supply
technological support and some
of the sobphisticated electronic
and communications equipment
needed for the service linking
customers directly through

small ground stations mounted
on their office roofs.

There are no plans for IBM.
to take a make in Unisat. But
the U.S. company, seeking a
more active role in the Euro-
pean communications business,
might join the Unisat partners
in setting up a consortium to
operate the communications
service.

Technical details of the
service are, expected to be
completed towards the end of
this year. But no agreement will
be signed until BT has
concluded separate negotiations
with Intelsat, the inter-govem-
ment organisation which
controls transatlantic satellite
communications.

It seems likely that some of
the capacity on Unisat — which
will be one of the world’s most
powerful satellites — will be
leased to Intelsat to carry
normal switched telephone
calls between the organisation’s
member countries.

BT already plans to provide
a link with Satellite Business

Systems (SBS), a joint venture
between IBM, Communications
Satellite Corporation and the
Aetna insurance group, which
provides high-capacity com-
munications for customers in
North America.

But for technical reasons
many of the more sophisticated
features offered by SBS in the
U.S. cannot be provided across
Die Atlantic. These features,
including video : conferencing
would be available to sub-
scribers to the planned Unisat
service.

The transatlantic SBS link
is awaiting approval by the
U.S. Federal Communications
Commission, which would also
have to authorise the Unisat
service.

Unisat is unlikely to be used
initially at least, to provide a
direct link between customers
in North America and con-
tinental Europe. „That move
would require complex negoti-
ations with European telecom-
munications monopolies,

advance. It also reflected an
easing in Eurodollar rates, with
six-month Eurodollar deposit
rates slipping by a i point to
16&, first decline in rates for
more than a week.'

The dollar was unsettled by
market rumours in the after-
noon .that Mr Paul Volcker,
Federal Reserve Board chair-
man, had resigned. These re-
ports were quickly rejected as
“absolutely untrue” by the
Fed.

The dollar’s trade-weighted
index feH from 12 1.7 to 120.7.
Against the D-Mark in London
it fedl to DM 2.4540 from -DM
2.4770; from SwFr 2.1290 to
SwFr 2.0860; and from FFr
6.8725 to FFr 6.8075.

The Yen also improved
against the dollar in London,
closing at Y254.3 from Y 257.1
following limited intervention
by the Bank of Japan,' said to
have sold $2 5m in defence of
the Japanese currency. The
gold price also rose, closing in
London at $30625 having pulled
back through the psychologic-
ally important $300 level from
Monday night’s London close' of
8296.

Despite the easing in Euro- ,
dollar, rates and' the dollar’s
decline yesterday, the markets
were treating the reversal as a
“breathing space” rather than
a turning point.

The markets remain- con-,
cerned about the growth in U.S.
money supply and funding of
the projected budget deficit
Money-, markets, Page.. 32;
Energy costs - fuel inflation
rate. Page 6

Defence

Continued from Page 1

Jobless

most serious domestic news for
the nation.”

The total number of unem-
ployed. including school leav-
ers, now represents 12.8 per
cent of the workforce, the
highest among the major in-
dustrialised countries.

The figures also show a down-
ward movement in the number
of vacancies notified to employ-
ment offices, which averaged
107,200 per month in the three
months to June. The number of
vacancies has been falling
slightly each month since
March, and although the. decline
is small it contrasts with a
steadily rising trend in the
autumn and early spring.

debates. He repeated that a
decision would be taken on
Invincible in two or three
months' time.

However, it appears highly
unlikely now that Invincible will
be sold. Australia has said it is
willing to cancel the sale and
Mr Nott appears to be trying to
persuade the Treasury to find
the £175m that would have come
from Australia.

The Defence Ministry was
congratulating itself yesterday
on having won the Treasury's
agreement that the cost of the
Falklands war — “ something
over” £5 00m up to June 4 —
will not come out of the annual
defence budget. Replacements
for ships, missiles and the like
are estimated at £250m a year
for the next two to five years.
There is no public estimate for
the cost of garrisoning the Falk-
lands, since the Government is
still not sure whether Argen-
tina win accept a- -comprehen-
sive ceasefire.

Decisions on which equip-
ment should he replaced, and
with what, would be made and
orders placed by the year’s end,
Mr Nott said. He hoped -to
announce ocher defence orders
and give more details on the
planned new Type 23 frigate in
the-forthcoming defence debate.

The defence budget for

1982-3 Is £l4bn. The estimates
just published show a rise of
more than 20 per cent on
defence equipment, from £5Jbn
last year to £6.5bn in the
current year.

Elinor Goodman writes: Mr
Nott appears to have pulled
off a major political coup
against the Treasury by win-
ning the Prime Minister’s agree-
ment that the costs of the Falk-
lands operation would come out
of the contingency fund rather
than the defence budget.

The statement will strengthen
Mr Nott’s position within the
Conservative Party.

Treasury . ministers had con-
ceded that the T unning COStS Of
the military operation would
have to be met out of the con-
tingency reserve. But they
were reluctant to concede at
this stage of the year that the
cost of replacing equipment lost
in the operation could not be
contained in the 3 per cent
growth in defence expenditure
which had been agreed.

EEC Continued from Page 1

summit in Brussels early next
week.

In addition the ministerial
talks in Luxembourg yielded a
significant bid to widen the
transatlantic trade conflict by
making a direct link between
the steel row and threatened
retaliation against the U.S.
over the trans-Siberian gas
pipeline issue.

The European Commission is
to co-ordinate law suits from
at least four EEC member
states which will challenge the
latest U.S. decision to extend
sanctions to cover U-S.
subsidiary companies involved.
The EEC suits will contest the

U.S. attempt to exercise “ extra-
territorial” political control.

The ministers' discussion of
the two issues came on the eve
of the arrival in Brussels today
of Mr William Brock, the U.S.
special trade representative for
further talks on the problem,
with members of the European
Commission.

Mr Malcolm Baldridge, the
U.S. Commerce Secretary, indi-
cated last week that the Reagan
Administration might be
prepared to consider some form
of voluntary restraint deal or
Orderly Marketing Arrange-
ment governing EEC steel sales
to the U.S.

UK TODAY

BRIGHT intervals with some
showers.

Scotland, N. Ireland .

Mostly (fry, sunny intervals.
Some showers near coasts;
Max 18C (64F).

England and Wales
Rain, prolonged at times.

Brighter later. Max: I7C
Outlook: Dry at first; rain
spreading from S.W.^

WORLDWIDE

TTday Y*dajr

midday midday

•C "F *c "F

Ajaccio S 25 77 L. Ang.f — —

Algiers S 31 88 Luxmbg. C 19 £6

Amsdm. R 19 66 Luxor & 41 106

Athena S Z7 18 Madrid S 2* 75

Bahrain S 35 95 Malorea S 26 73

BarcJna. S 25 77 Maine S 3* 93

Beirut — — Malta S 30 37

Belfast R 11 52 M'ehstr, R 11 52

Belgrd. F 26 73 Malbna. C 13 54

Berlin S 20 68 Mx. C.t ..

Blame F 21 70 Miamlt F 27 81

Bmghm. R 14 57 Milan S 28 82

Blackpl. R 10 50 Morirri.t F’ 15 59

Bordx. F 24 Moscow F 19 66

Boufgn. R 17 63 Munich F 23 73

Bristol R 16 61 Nairobi — —

Brussels C 20 68 Naples S 25 73

BudpsL S 26 79 Nassau — . —

Cairo — — Nwcstl. R 11 52 .

Cardiff R 17 63 N Yorkt f 19 66

Cas'b’ca C 22 72 Nice S 23 73

Capa T. S 15 S3 Nicosia S ■ 28 82

Chicri.t F 16 61 Oporto F 20 68

Cologne C 23 73 Oslo C 14 67

Cpnhgn, F 17 63 Paris C 19 66

Corfu S 31 88 Perth S 18 81

Convert F 13 55 Prague F 22 72

Dublin R 11 52 Rykjvk. F 12 5* |

Dhrvnk. S 29 84 Rhodes S 28 82 1

Ednbgh. C 12 54 R|q J'of — —

Faro S 23 73 Roma S 32 90

Florence F 29 84 Solibra. R 23 73

Frankft. F 23 73 S'ciseot ; — —

Funchal S 22 72 S. Mritx. — —

Geneva F 25 77 Singapr. F 31 .88

Gibritr. S 28 79 S’ttagot — " —

Gl'sg’w .C 12 54 stole hlnu.C »1S -B8

G'rnsev S 17 63 Strasbg. F 24 '75

HelsinlTi F 14 57 Sydney S IS 61

H. Kong F 31 B8 Tangier F 22 ,72

Innebrit. S 24 TO Tei Aviv S 28 79

Invmss. C 12 54 TeneeifB S 22 72

I o Man R 10 BO Tokyo. F 25 77

Istanbul S 28 82 T'rintat C 12. S*

JflNOV F 17 63 Tunis S 35 95

Jo'biirg S 21 70 Valencia. S 30 Sfi-

L. Pirns. F 23 73 Venice S • 26 77

Lisbon ..C 21 70 Vienna C 2* .75

Locarno -F 26 79 Warsaw & 19 £6

London R 16 SI 2u rich .S 23 73-

C— Cloudy. f^-Fslr. R^Roin..S-^Sunn^,
tNaon GMT temperatures

The Defence Estimates make
no secret -of their pre-Falklands
conception, and Mr. John Nott,
the Defence Secretary, acknow-
ledges that- some adjustments
will heed to be -naade to the
programme In .the tight of the
conflict. 1 So the. stock market,
looking .. forward to some
buoyant results in the next few
days from Racal,. Ferranti and
GEC, yesterday greeted the esti-
mates. with a polite yawn.

Yet tucked away in the tables
is a proposed 22 -per cent in-
crease In-- spending oh .equip- ‘
ment- in -1882/83.' . This
presumably is what ; the 'MoD
considers necessary to increase
the real volume. of spending by
3 per cent at a time when
domestic Inflation : Is. in single
figures. . From the contractors’
point of view it represents a
very significant boost, to levels =
of business, and explains, inci-
dentally, why earlier com-
plaints about -slow MoD
payment have fallen to a
murmur.

The estimates provide confir-
mation that the - contractors
have. been able to convince the
MoD of the benefits of a more
commercial approach. Equip-
ment is likely to he designed
with more of an eye to export .
potential, while companies will
be better supported in develop-.
Lug new systems, independently.
Of mare direct impact on near-
term profitability is the aim to
adopt incentive pricing where-
ever practicable: ‘

The defence sector, which
has outperformed the market
since the beginning of April by
10 per cent plus, has more to
chew on here than .the work of
replacing-equipment expended
in -the Falklands conflict Yet
the estimates provide a strong
warning against indiscriminate
buying in the sector. It points
out; “It is no longer open to
the Government to maintain
the current level of R and D
defence^ funding across the
present 'wide field.” Withdrawal
from certain - sectors would
“ involve industry itself in a
difficult interim ' period of
adjustment” The premium, on
politicaL lobbying ability has
accordingly been raised. There
are likely to be nasty shocks for
some companies— most likely in
the disdained “ platform ”
sectors of ships, fixed wing air-
craft and, possibly, tanks.

Hambros

Hambros’ preliminary ’ state-
ment for the year to March, is
a powerful advertisement for
full disclosure, at the very least
of non-banking interests. Share-,
holders will earn very litte from
the figures, which show that

Index rose 0.9 to 555.8

> CHARTER
CONSOLIDATED

j Sfcna FrfetRdatjva
l IsF.T-Aclnrin

L ALL-SHARE HDEX

1980 1981 1982.

disdosed net profits have fallen
from £23 ,2m to £I5.4 Ul
• Dividends from Hambro Life -
are again the largest item, cover-
ing almost 1 , the whole . of
Hambros’ own increased divi-
dend and the group's- invest-
ment in this success story is
worth about £125m at current
market values, equivalent to
almost 90 per cent of its own
market capitalisation.

Most other entries in the
profits ledger have been cal-
culated by a process nf finan cial
alchemy. The cost of with-
drawing from the Norwegian
shipping saga, £15.9m after full
tax relief, has been met by a
transfer from inner reserves
and is mostly funded in cash
terms by a -equity injection of
£10m from the parent company.
This, in . turn, has been 'financed
through •• the £13m .which
Hambros received by selling con-
vertible preference . stock in
Towij and City.

So far, so good, Hambros also
made a profit of £Sm tin the sale
of its Mills and Allen stake, most
of which is used to offset sundry
debits on the portfoio invest-
ment account Heavy losses in
and diamond trade are balanced
by ad vertising and other income
to produce' a small "operating "
profit of £200*000. Of course,
none of this is explained in the
statement

Charter Consolidated'

Charter Consolidated shares
were trading at. their lowest
level of the year before yester-
day’s news that profits for the
year to' March had risen 123
per cent to £59 -2m pre-tax.
Even after a I5p jump to 185p,
the company was valued at a
discount of almost 60 per cent
to reported net worth. So
Charter still has its work cut
out persuading the market 1 that
its abundant financial: resources

can be employed- more produc-
tively in operating subsidiaries ■
than on the. London -money

market. ’ . . , „

The strategy of establishing
direct control over industrial
and mining companies has yet
to bear fruit. Investment earn-
ings accounted for more than
three-quarters of pre-ta x pro fits
last year arid the Alexander
Sband acquisition, included for
10 months, can hardly have
funded its £24-6m price lag •
with a reported operating profit
of £1.8m. .; - '

.Charter has admittedly been
'unlucky-' -Mining earnin gs- are
under intense pressure and ,
Cape Industries, after bringing
its reduced automotive in-
terests back to. profit, has been
knocked sideways by the weak-
ness of the insulation market.
Yet Charter will not find ‘this
record much help in justifying
its offer for Anderson Strath-
clyde, if the Monopolies Com-
mission waves the bid through.
More acquisitions are un-
doubtedly in the pipeline and
Charter may now be looking -
' for an investment which ties up
less fixed capital and produces
a rapid cash return.

Global

Global Natural Resources'
.agreed bid for McFariane Oil
is only superficially straight-
forward. The purchase con-
sideration— £26.Bm based on
yesterday's London price for
Global shares of 620p— is not
far out of line with the #
appraised value of McFarlane’s *
‘oil and gas reserves. More-
over, Global will be picking up _
some sizeable cdSl _ deposits
north of Houston, not ' to speak
of an executive jet and a .trans-
fusion of managerial and tech-
nical expertise Historic net .
income figures suggest that 1
Global’s earnings per share j
wiH not be much diluted by the .
issue of 355m new shares to
help finance the deal.

. But this is scarcely the point. >
Global’s management, is cur?
rently wader attack, with con -
trot of the company likely to ,
be settled in a proxy battle at
the annual meeting. Dissident j
shareholders ■ feeL that Global’s ;
main object in taking aver '
McFariane was to place 13} per
cent of the enlarged equity in
hands friendly to the present
board.

Because Global’s stock is
held in bearer form, few share-
holders have in the past been ,
active voters. If the McFariane
shareholders can be relied upon
to bring their new .Global stock
to ' September’s meeting, their
votes could easily have a “dis-
proportionate and perhaps
decisive effect.

-'-Reproduction. :tbe - contents

ag^ared at- the Potr Qfftca. Frir
Irackwj- House;. .Cannon sow, London. EC4T*